It's a Very Merry Ethanimation Christmas Movie

A Human named Michael Cera recounts how the Ethanimation Theater was going through financial hardship, and the Toons, seeking Denny for guidance. Denny eventually feels he is not useful to anyone and an angel named Phil (Seth Rogen) brings this up with his Boss (Susan Sarandon) as they review what has gone on with Denny in the past hours.

Hours earlier, Denny prepares a Christmas show with his fellow Toons with Magic playing Santa Claus. Denny is approached by Edward Bitterman (Danny McBride), a banker/real estate agent who says that he will foreclose the Ethanimation Theater if Denny does not pay him. Human leaves the Toons because he has fallen in love with Bitterman. While trying to raise money to pay Jim, Denny tries to find a celebrity to participate in his Christmas play to no avail. Meanwhile, after learning from Human that the deadline is midnight, Bitterman changes it to 7:00 p.m. When he sees her with another man however, Human leaves him and warns Denny about the deadline change. Upon learning this, Denny sends Mr. Wow to deliver the money to Bitterman. Mr. Wow confronts a crazed nature-show host (spoofing Steve Irwin), Michael Cera (who gets shot with a gun by the nature-show host), and a gang of Black Boys after being dyed Color at a Christmas Cookies lot and mistaken for the Bob the Tomato. Mr. Wow goes through the steam baths and ends up back to normal. When Mr. Wow eventually makes it to the bank and Bitterman's office, he goes through a gigantic web of burning lasers leading to Bitterman's office several times before finally discovering that he's too late and that he has grabbed the wrong bag containing clothes for the Salvation Army following his incident at the Christmas tree lot.

After witnessing these events, the Boss allows Phil to help Denny. When Phil arrives, and after Denny wishes he has never been born, he ends up showing Denny what would have happened if he had not existed. In the world without Denny, Bitterman has turned the park near the Muppet Theater into a shopping mall called Zuiett Plaza, the Ethanimation Theater itself has become a nightclub called Club Zat owned by Bitterman, Krusty Burger has become a famous fast-food restaurant, and all of Denny's friends have fallen into various detrimental situations.

Denny has Phil restore him back to his reality and returns to the Ethanimation Theater. However, Bitterman arrives to shut the theater down and fights with PJ. Human arrives and announces he has made the Ethanimation Theater into a historical landmark, foiling Bitterman's plan. Embittered and defeated, Bitterman storms out of the Muppet Theater.

Outside, the Toons and Michael Cera sing "We Wish You a Merry Christmas".

This is a Parody of The Muppets & Sesame Street & Fraggle Rock