The Sesame Street resident loses his precious blue blanket after fighting with his friend for it. He embarks on a quest to locate it, but his journey leads him to a strange faraway land populated by foul-tempered creatures. Children's adventure, starring Mandy Patinkin, Vanessa Williams and Sonia Manzano, and featuring the voice of Kevin Clash.

Elmo loves his fuzzy, well-worn blue blanket more than anything in the whole world. However, when Elmo's blanket gets sucked through a colorful, swirling tunnel into Grouchland, the yuckiest place on earth, Elmo goes on an adventure to Grouchland to retrieve his prized possession.