Hank is out buying a Christmas tree and he learns that everyone else is paranoid over the Y2K bug that is supposed to occur and buying out everything in stores. He doesn't believe it and is worried on how his perpetually paranoid friend Dale is going to handle it; it turns out that he acts surprisingly calm because he had bought supplies earlier to stock up on. Meanwhile, his wife Peggy is paranoid that her outdated computer a Kaypro is going to shut down after the millennium and Hank assures her that he will buy her a new one, and his son Bobby is worried that the stores will be out of his favorite toilet paper so they stock up despite the mass hysteria, Hank is unable to purchase a new computer because the employee is worried that his computer is malfunctioning because of the Y2K bug.
Meanwhile, Dale discovers that a gerbil he had been saving to eat had eaten all his food and spilled all his mountain dew he had saved, and Hank workplace Stickland Propane is low in supplies because of the hysteria and can't handle the stress and takes what little propane they have for himself because his boss won't help him, he decides to team up with Dale and the Christmas tree salesman to stock up on supplies which ends up in disaster, Hank decides to buy Peggy a grandfather clock instead and stocks up on old fashioned gifts in case the Y2K bug does occur everyone is upset with their gifts except for Bobby because he got the toilet paper he wanted and they decide to get real presents.
Hank takes the grandfather clock for himself and begins to work on it only to accidentally inhale some varnish fumes knocking himself unconscious, he receives a vision of himself and everyone he knows as moles in a whack-mole-game and he gets some assurance from his hero Tom Landry that everything will be okay, he regains conscience and tells his family not to worry because the Y2K bug won't happen, his prophecy comes true and everyone is relieved and they have a bonfire with their old fashioned Christmas presents and Hank tells Peggy that he will give her a new computer.