Fred greets the audience, saying that it is Christmas Eve. He says sees Sparky walking in the background, before Sparky walks away. He says that Sparky is camera shy. He tells the audience that he is spending Christmas at his Aunt Patty's house due to his mom being in rehab. Fred notes that his Aunt Patty got a lot of presents for his cousins, but none for him. Fred does not worry, however, because he says that Santa will get him presents. He then becomes angry and says that his cousins will get coal. Fred then tells the story of how he got coal one year because he got angry at his mother and hit her in the head with a golf club. Fred tells the audience that he is still awake, even though all his cousins are asleep, because he wants to meet Santa. To pass the time, Fred sings Christmas carols, such as "Silent Night" and "Jingle Bells". Fred then hears movement, but claims that it is only his cousin's spider monkey rattling in its cage. Though Fred is supposed to feed it, he does not as he wants it to starve. Fred says that he is able to calm it with a song, and that it has a high rate of success. He then hears Santa coming down the chimney. Once Santa exits the chimney, he says that Aunt Patty's house has a disgusting chimney. He then becomes upset when he realizes that there were no cookies left out for him. Fred apologizes, saying that him and the family did not think to put any out, as they thought Santa was fat. Santa, being skinny, told Fred not to believe in urban legends. Santa then becomes distressed, realizing that he has been seen. He worriedly asks Fred why he is awake. Fred says that he is still awake because he drank soda before bed, and could not sleep because he had sugar in his system. Santa yells at Fred to go back to bed. Fred starts crying, so Santa apologizes. Fred says that Santa should be sorry for being a "mean man," as Fred thought Santa was nice. Santa then gives Fred his present, a karaoke machine. Santa then says that Fred's cousins are getting coal, as they had been bad that year. Santa then teleports, chanting "Ooncha ooncha ooncha boom!" Fred is happy about his karaoke machine, and is in awe at Santa teleporting away. Fred sings a song about the holidays. The episode ends with a shot of Christmas lights with the song "Here Comes Santa Claus" playing.
After the episode ends, it shows an outtake of Santa, played by Lucas Cruikshank yelling "Why are you awake?!" "Here Comes Santa Claus" can still be heard playing in the background. Lucas stops acting, and gets up after hearing his dog barking. Lucas walks off screen, and laughter is heard, likely due to the fact that he is wearing a Santa costume. Lucas says that he is not finished filming, and a woman, presumably his mother, asks why he did not start earlier. He says he only has two more things to say. The woman says to come downstairs, and Lucas laughs. The video cuts off after this exchange.
- First time Fred is shown to have extended family.
- First time an outtake is shown.
- Santa is the second human character (besides Fred) to be shown on screen, the first being Fred's mother.