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In Once Upon a Sesame Street Christmas, the story begins in the present day on Sesame Street, which is now a friendly and vibrant neighborhood. Elmo, Grover, Big Bird, Bert, Ernie, Oscar the Grouch, and Cookie Monster are preparing for Christmas and decorating their homes. However, Elmo's curious nature makes him wonder about the history of their beloved street.

Elmo decides to investigate and begins researching the origins of Sesame Street at the local library. Using a magical book, Elmo is transported back in time to the early days of Sesame Street, where he meets their ancestors. Each of the characters has a story that sheds light on their family's efforts in transforming the neighborhood.

Elmo discovers that his ancestor, Elmer, was a kind-hearted monster who used to sing and entertain the locals. He was responsible for spreading joy and happiness through his music, just like Elmo does today. Elmo becomes inspired by Elmer's determination to make Sesame Street a friendly place.

Grover's ancestor, Groverine, was a shy and timid monster who struggled to communicate with others. By overcoming her fears and learning to express herself, she helped foster a sense of community and acceptance. Her efforts paved the way for the vibrant, diverse street we see today.

Big Bird's ancestor, Bigger Bird, was a champion for birds and their habitats. He worked tirelessly to create a safe environment for avian friends and inspired others to care for nature. His dedication and love for birds set the foundation for the lush green spaces and trees found on Sesame Street.

Bert and Ernie's ancestors, Burt and Ernestine, were best friends who came from different backgrounds. They faced social barriers and prejudices but showed that friendship could overcome any obstacle. Their bond encouraged unity and acceptance among the neighbors, ultimately erasing any divisions on Sesame Street.

Oscar the Grouch's ancestor, Octavia the Optimistic, was a positive and sunny character who embraced her uniqueness. She taught others to look for the bright side in every situation and find joy even in the small things. Her optimistic spirit greatly influenced the people on Sesame Street and helped transform the street's reputation.

Cookie Monster's ancestor, Crunchy the Carrot Monster, played a key role in introducing healthier lifestyles to the community. He emphasized the importance of nutritious food and taught others about maintaining a balanced diet. His efforts led to the introduction of farmer's markets and healthy food options on Sesame Street.

Throughout the movie, Elmo witnesses how each character's ancestor made impactful contributions to the transformation of Sesame Street, turning it from an unfriendly street into a warm, kind, and music-filled neighborhood. Elmo returns to the present day with a renewed appreciation for his friends and a better understanding of the history behind the place they call home. The movie concludes with a joyous Christmas celebration where everyone comes together to sing, dance, and express gratitude for the unique heritage of Sesame Street.
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