In the first part of "Welcome to Woodland Valley", viewers learn that a tragic event has happened in Woodland Valley: a tree has fallen and ruined part of the village library. Everyone's upset about it, but the entire Woodland Valley community is pulling together to help out. When the kids of the Big Blue House, including Harry, find out, they decide to help in their own way. Viewers explore more of Woodland Valley than they've ever seen before, visiting the library, the post office, the general store and the mouse school that Tutter will be attending, among other locations.
In the second half of the two part special, the plans are coming together for a potluck dinner Bear is holding. Everyone will get together at the Big Blue House, eat good food and talk about solutions to fix up the library. The kids are hard at work collecting books to restore the library's collection. And Doc Hogg is getting down to business as to just what to do about the tree currently occupying a large portion of the library. He wants to remove it, chop it up and use it for firewood to heat all of Woodland Valley, but Ojo discovers possums who live in the tree. When the others discover the possums, they decide not to remove the tree. So they try to figure out something else.