Elmo loves his fuzzy, well-worn blue blanket more than anything in the whole world. They are inseparable-a perfect team, and Elmo has promised Blanket that they will be together forever. He is able to keep his promise until Zoe, Elmo's very best friend in the whole world, picks up his blanket and asks to hold it. Elmo snatches it out of her hand and adamantly refuses. A tug-of-war breaks out and Elmo's blanket is whisked away, landing in Oscar's trash can. Elmo jumps into the trash can to retrieve Blanket. At the bottom of the trash can, Elmo finds his treasured blanket snagged on a nail. He tugs on it, and finally, with one giant yank, the blanket, nail and boards all fly off and Elmo and his blanket are sucked down a colorful, swirling tunnel into Grouchland, the yuckiest place on Earth. Thus begins a journey that takes Elmo on an action-packed adventure into a fun-filled, far way land full of grouchy creatures, stinky garbage and the greedy Huxley.