Sgt. Curran first receives the call from Rex and Boscoe. They and others have taken hostages at a local toy store. He soon learns that he has been speaking to a teddy bear and a toy owl who, along with many other stuffed animals, have somehow come alive. They have no intention of letting the hostages go. In fact, toy monsters from a failed kids' movie (who have also come to life) are engaged to guard the doors - and their big, pointy teeth are now real!
One problem presents itself: The toys don't know what they want to let the hostages go.
Curran volunteers to enter the store and negotiate. He soon learns that what the stuffed animals want is love. They complain that no one has been purchasing them. Everything is video games nowadays. All they do is sit on their shelves, grow lonelier, and gather dust.
Curran is able to convince the store's manager to give the stuffed animals - which aren't selling even at clearance prices - away to a center for sick kids to stay at while receiving care at area hospitals. Curran tells him of the publicity such an act would get from local news crews looking for warm-and-fuzzy stories. The manager agrees, and his store gets a lot of publicity as he and his female assistant manager, dressed as Mr. and Mrs. Claus, give away the stuffed animals.
Curran brings Rex home to his young daughter, who loves him. Rex and Boscoe have promised him that toys who are being loved are happy to remain as toys. However, while checking on his sleeping daughter one night as she holds Rex in her arms, Curran sees the teddy bear give him a little wink.