On Christmas Eve, Flaky cooks up a meal while singing "Deck the Halls". She checks the roast to see if it's done, but smoke pours out of the oven and sets off the fire alarm. Flaky, wanting to protect Brushy's hearing, gets the ladder and tries to turn it off. She ends up breaking it and removing the batteries to stop the noise. Outside, Lifty and Shifty (the former wearing a Santa hat) plan to ransack Flaky and Handy's house by going down the chimney with a sack. They come out of the fireplace and are about to steal Handy's possessions when suddenly, they see a Christmas tree with ornaments and a star on top. They decide to steal the tree instead, but it's too big to fit through the chimney. Eventually, they give up and leave the tree stuck in the chimney as they hunt for easier gains.
As Flaky sets a fire in the fireplace, Brushy wants her to read a Christmas story before going to bed. As Flaky begins reading, smoke begins flowing out of the chimney and filling up the room. Because the fire alarm's broken, Flaky and Brushy don't realize this and they both succumb to carbon monoxide poisoning.
Lifty and Shifty next set their sights on Mime's tent, only to find it empty. They both watch Mime pantomiming washing his face, frying an egg, and putting a bag of money inside a safe before leaving the room. They shrug their shoulders and enter the tent, pretending to steal the imaginary safe and put it in the bag. When they leave the tent, they're disappointed by how little they've accomplished.
Next, they see Darkfire's house, which they enter through the chimney. Inside, Lifty and Shifty see numerous rare antiques and a huge plasma screen TV in the den. They tell each other to be quiet before going about their task, but they end up knocking over a picture frame, breaking a vase, and turning on the TV. Amazingly, DarkFire doesn't wake up through any of this, so Lifty and Shifty decide to steal everything in his house.
Unfortunately, as soon as Lifty takes some cookies that were set out DarkFire opens his eyes in bed; sensing that something is amiss. He gets up angrily and grabs his bowie knife. He storms out into the front room and Lifty and Shifty scream.
Lifty and Shifty try to escape through the door but DarkFire locks them in, forcing them to run in the other direction. While running, Shifty sees candy canes that look like stakes flying at him. He ducks, while an oblivious Lifty is impaled in the torso. Shifty keeps running until he sees a fancy candle holder in a bear trap. He carries a bag of sand and attempts to match the weight of the bag with the candle holder's. He successfully switches the items around and runs for it. In a moment of ill-fated greed, he comes back to grab the bag, however, and the bear trap snaps off one of his hands. Meanwhile, Lifty begins licking the candy canes in an effort to escape.
Shifty continues running and narrowly avoids stepping in a snare trap made with Christmas lights. He then turns to see DarkFire, who crushes a glass Christmas ornament in his hand and blows the dust into Shifty's eyes. The blinded raccoon takes a few steps back and gets his leg caught in the snare trap. Using his bowie knife, DarkFire cuts open Shifty's torso, spilling blood everywhere while Shifty screams in pain. DarkFire laughs happily as he does this.
Lifty, meanwhile, finally licks through the candy canes and falls out of the trap. He looks up to see a shadowy figure that looks like Shifty standing on a stack of boxes and pointing to an exit out a window. He climbs the pile and jumps out the window, only to discover that DarkFire is wearing Shifty's skin and hat in order to trick him. Lifty flies into a baler and is torn apart. DarkFire drives the baler away and Lifty's carcass comes out of the machine in the shape of a Christmas present under a tree. Lights on the tree begin blinking, resembling a Christmas tree.
Meanwhile, back at Mime's tent, he turns on the light only to discover that his "safe" has been stolen.
- Flaky and Brushy die of carbon monoxide poisoning when their chimney gets blocked. (This has been confirmed as the most painless death in the entire series so far)
- Shifty is carved with a Bowie knife.
- Lifty is tricked by DarkFire into jumping out a window where he lands in a baler.