The story starts when Hank and his friends discuss their plans for Christmas in the alley when suddenly, his friend Bill Dauterive begins to weep because his wife left him around Christmas time and that he has no family to celebrate Christmas with and runs back into his house. Hank follows Bill and discovers that he has a bunch of presents he had bought for his wife, Lenore, before she left him and he wants to keep them in case she ever comes back. To cheer him up, he invites Bill over to his house where he discusses the other's relationships including Bobby's who had a brief relationship with a girl two years older than him who only saw him as a friend and Luanne's boyfriend Buckley, who had perished in a propane explosion earlier that year this makes them feel bad and Peggy asks Hank to excuse Bill but he tells her that he would stick by Bill's side because he had saved his life when they were younger and defended him when they played football. The next day, they discover that Bill has bought an iguana for companionship naming it Lenore and he feeds it raw insects which disgusts everyone.
Peggy tells Hank that Bill isn't welcome at dinner because he is disgusting and depressing to be around and Hank reluctantly tells him to not come over which makes him very sad, that night he watches Hank and his family enjoying their supper and having pleasant and fun conversations, he steals Hank's ladder and uses it to climb onto his roof knocking out Hank's Christmas lights in the process as Hank goes outside to investigate he asks Bill if he's fixing his TV antennae and he tells him that he's going to commit suicide and says goodbye to Hank. Hank rushes in to stop him, but Bill slips off his roof and breaks his arm. Bill is rushed to the hospital and released the next day the others discuss what to do with him to prevent him from killing himself Dale takes the day shifts, Boomhauer takes the evening shifts, and Hank takes the night shifts Bill attempts to kill himself many times and the others restrain him, Peggy gets the idea to hook Bill up with a blind date which turns out to be an elderly librarian Bill shows her his iguana which urinates on him she finds this disgusting and he desperately asks her to marry him, despite having just met and she refuses then his iguana gets scared of the Hill's bloodhound Ladybird and it runs outside and he jumps out the window to chase it, Hank finds Bill huddled in a corner of his house crying his eyes out and he decides to give him a little tough love by destroying the gifts he left for Lenore because he is very tired of Bill's behavior, this leaves Bill shocked and horrified.
The next day Hank finds Bill's iguana and returns it to him only to discover a strange woman in Bill's house, he asks who she is only to discover that it's Bill dressed in drag calling himself Lenore and talking in a high pitched falsetto voice, Hank is disgusted and angry with him and tells him that he is no longer welcome at his house and is uninvited to his Christmas party Bill doesn't listen and comes anyway everyone at the party is horrified by his cross-dressing and behavior, Peggy decides to call the real Lenore which perks Bill up only discover she doesn't want to talk to him which makes him very sad and starts to drink all the wine being served and everyone starts to yell at him only for Hank to come in wearing one of Peggy's dresses and pretends that Bill had gotten a special invitation this makes Bill very angry and frustrated and runs out of the house, Hank follows him and pretends to be Lenore to get through to Bill this causes him to go back to normal and remove the dress and he decides that he is over Lenore, as they leave Dale arrives in one of his wife's dresses only to discover that they had removed their believing the charade.