Sesame Street ABC is the companion game to Sesame Street 123, and like that game provides players with two mini-games that provide educational benefit for children of a preschool age. It features Sesame Street characters such as Bert and Ernie, Cookie Monster, Big Bird, Grover and Oscar the Grouch.
The first game, Letter-Go-Round, has various modes intended to teach children the different letters of the alphabet. These begin with simple games where the player simply has to match the letter to one of six on a spinning Ferris wheel. The advanced version of the game tasks players with discovering a hidden three-letter word, using the six letters available.
The second game, Ernie's Big Splash, is a rudimentary Pipe Dream clone in which the player has to construct a path between the starting point and the end point, which is Ernie's bathtub. Ernie's beloved rubber ducky follows the path the player lays out, eventually ending up with Ernie.
The title screen does not features the game's title, but does provide a karaoke version of the TV show's theme song. The game was developed by Rare's subsidiary Zippo Games and published by Hi-Tech Expressions, similarly to its twin Sesame Street 123.