On Christmas Eve, Jeff is brought to life because he doesn't want to miss Christmas. But Jodie, Sam, and Muffy know that he's going to be alone in the store. So after they leave, he decides to decorate the biggest Christmas tree. Jodie returns and so does Muffy. Sam tries to get in but he left his wallet and keys inside. So after trying to call Jeff to let him in, he is taken away by the police. Meanwhile, two of Santa's elves are loose in the store and Muffy tries to catch one (since everyone knows if you catch one and let it go, they give you a wish). But the elves outsmart them and deliver Sam's wallet and keys to the police station. After proving who he is, the police let him go and he gets back to the store in time to spend Christmas with Jeff.
Everyone is back for Christmas but the elves play another trick: they hide all the presents so everyone goes on a gift hunt to find them. Jodie's is found under a tree in the hall, Sam's is found under the tree in his office, Muffy's is found in the children's department, and Jeff's is found on the roof. Jodie gets a pop-up book of "A Christmas Present for Jack Frost" which they turn into an opera, Sam gets new underwear, Muffy gets a big statue of a mouse-elf made of cheese, and Jeff gets a new telescope.