I watched this around 2006-2007.
It was a Christmas movie, where they show dummy dolls talking about baby Jesus being born. They also had songs playing, like Sesame Street does, whenever they show performances. The songs were, “It’s Christmas, It’s Christmas” which were sung by four or five girls. There was another song where it started out as, “His name is Jesus”. There were more but I cannot recall the lyrics or title of the songs. Anyway, it involved dummy dolls singing and talking about the story of baby Jesus being born in Bethlehem. It is also a Christmas story, with Christmas songs.