Peter Pan leaves the crew a tree and presents to celebrate Winter Treasure Day; however, Captain Hook is up to no good as usual, stealing everything. To retrieve the items, Jake, Izzy and Cubby, joined by their parrot Skully, go down an icy path, and go through Ice Cube Canyon before heading to the peak of Never Land Mountain. After hearing Jake's plea, Hook decides to return everything, and gets a light-up jingle bell hook from Peter, his long sworn enemy as a gift.
Spoilers end here.
Notably, the events in this episode are referenced in "Hook on Ice!", the other episode that this one was produced and aired with.