Annie and Ruthie are in the kitchen dancing to Christmas songs and baking cookies. Simon walks in and shows them how to dance correctly. Annie and Ruthie suggest that he should try to wear new pajamas since the pajamas he is wearing are too small. Mary and Lucy arrive home and complain about having to volunteer at a soup kitchen and doing the live nativity scene for the church. Annie tells Matt that Eric wants to see him in the garage and Matt sulks off. Simon wants to put up the lights, but Annie tells him that they won't be doing it this year. Matt meets up with Eric in the garage as he is looking in a box of his old records. Eric suggests that Matt dresses like Santa for the day to earn $100. Matt is not happy.
Annie is getting ready for the gift drawing and puts the names together and marks them so that they can pick their names. The kids get together an draw names. Everyone picks the names and then they all run off. Lucy answers the door to Jordan and she is complaining about him being gone for Christmas. Jordan gives Lucy her present for Christmas, but tells her that she can't open it until later. Lucy tells him that she got him a present, but she hasn't wrapped it yet. Jordan leaves and Ruthie asks her about Jordan's present, but Lucy hasn't gotten him one. Eric and Mary arrive at the soup kitchen while Mary is complaining about the job. Eric asks Mary what he should get Annie for Christmas and he asks about getting her a chain for her pendant. Mary reminds him that the rules are that they make the present or give something that they already have, not buy anything. Joy greets them and asks Mary to start her work.
Lucy asks Annie what she should get Jordan and she tells her that she has to spend $100. Lucy complains about the live nativity scene that she has to put together for the church and Annie suggests that she hold tryouts. Annie is confused about what to get Eric so Lucy suggests that she fix up an old record player. Simon wants to put up the Christmas lights, but Eric won't let him so Simon resolves to put the outside lights inside. Eric agrees. Joy brings in a volunteer, Carlos, to meet Mary. Mary is stunned by his good looks. Ruthie asks Simon how Santa does all that he does on one night. Simon wants Ruthie to leave her alone and tells her to go through the recycling bin to find a gift to give someone. Matt is talking to his girlfriend, Jenny, and they are planning on going to a ball and he will be working for the money to pay for the tuxedo. At the mall, Matt shows up and the "elf" is not happy with the replacement. Eric shows up at the soup kitchen and offers to help Mary, but Mary is only concerned with Carlos and how cute he is. Mary informs Eric that she offered for Carlos to spend the holidays with them. Eric seems upset.
Carlos comes over to the house and talks to Eric and Annie and he feels guilty for bothering them when they have so much to deal with. Carlos is traveling across the country and asks to pitch his tent in their backyard. Annie tells him no, but they decide that he will spend the night in the garage in a sleeping bag. Carlos explains that he and his father had a fight and he left 3 years ago. Matt is playing Santa Claus and the little kids are annoying him. Annie introduces Carlos to Lucy and Simon. Simon tells Annie about his plan to put the outside lights inside. Simon asks Carlos to help him string the lights as he laments that the cats in Cats are not real. Jenny shows up and offers to take Ruthie to run errands. Annie tells them that it is ok and then goes upstairs to see Eric. Ruthie asks to go to the mall to see Santa. Eric calls the pawn shop to see how much he can get for his old records, but when Annie walks in, he fakes that he is talking to a member of the church. Lucy complains to Lucy that she found Carlos, a hottie, and that she needs to find something comparable to what Jordan got for her. Mary suggests that she peeks at the gift, but when she looks at the present, Mary sees that it is a shoe shine kit. Lucy is totally confused by the gift. Annie shows up to the pawn shop and talks to Rocky. She asks him about the jukebox that he had displayed and she offers her pendant to trade. Rocky doesn't want to take something so personal, but Annie pleads with him to take it and give the jukebox in trade. Matt is enjoying himself at the mall when Ruthie walks up and sees that it is Matt and screams.
Lucy is on the phone calling people to audition for the live nativity scene at the church. Eric offers to drop her off at the church, but Lucy thinks that there will not be anyone who will show up for the auditions. Eric tells Lucy to bring her shoe shine kit in case she gets bored. Carlos and Simon are working on the lights in the living room and Simon tells Carlos just to tell Eric and Annie his story, but Carlos explains that he will only be in town for a little bit. Simon explains that his family is "weepy" and eventually they will find out why Carlos is not at home. At the church, Lucy shows up and there are tons of people wanting to audition. Eric is at the pawn shop and tells Rocky that he wants to give Annie a chain for the cross that her mother left her. Carlos shines the jukebox that Annie received when they are interrupted by Matt and Ruthie. Ruthie is complaining that Matt is an imposter and Matt does damage control by explaining that he works for Santa. Mary calls the telephone operator and asks for Jordan's Uncle Sal's phone number to talk to him. Mary explains the situation to the telephone operator, but Carlos interrupts Mary. The telephone operator found Sal's number and tells it to Mary. Lucy is at the auditions and Eric eventually joins her to make the decision. They eventually decide on a group of people to be the nativity scene. The lights turn on when the doorbell rings, but Annie and Simon are so impressed and confused by the light situation to answer the door. Matt eventually opens the door and Jenny is dressed in her dress, but Matt tells her that he got fired and doesn't have any money to buy the tickets. Jenny has come up with a plan and takes Matt outside. Ruthie walks in and explains that she is not over the knowledge that Matt was the Santa at the mall. When they all leave, Annie advises that Simon check out his lights again. They put on their sunglasses and Simon works on the lights while Annie rings the doorbell. Eric, Carlos, and Mary are playing cards and are annoyed by the doorbell that keeps ringing. Mary eventually gets up to find out who is ringing the doorbell. Eric tells Carlos that he talked to his parents and they want him home for Christmas and he has a plane ticket with his name on it to leave at midnight. Matt and Jenny show up at a water fountain and they begin dancing and they both feel bad about what happened earlier.
Jordan calls Lucy and tells Lucy that the presents have gotten mixed up for Lucy and his Uncle Sal's monkey. Jordan explains that she should have gotten a basketball with the words "I Love You" on it and he tells Lucy that he loves her. Mary is at the soup kitchen and tells Joy that Carlos left to go home and left a note for the person who bought the plane tickets. Joy explains that she gives one gift out a year and it just happened to be to Carlos to go back home. At the mall, the "elf" is now Santa and the kids are not happy with him not being what they think Santa should be. Matt shows up and defends the new Santa. Eric is wrapping Annie's presents while Simon is confused about what to give Ruthie to restore her belief in Santa. Eric advises Simon to pray about it, so Simon begins to pray and reminds God that He helped him get a dog and if He can now help him help Ruthie. Annie and Ruthie show up and asks Simon what he doing and when he tells them that he is washing the floors, Annie thanks him for the help. Eric and Annie dance in the living room as the kids show up to exchange gifts. Simon gives Ruthie his pajamas that were too small for him, but the real gift is not here yet. Matt gives Simon some of the money that he owes him. Lucy explains that she got her gift already from Mary for contacting Jordan to fix the confusion. Lucy gives Mary a card that offers to volunteers at the soup kitchen for three weeks. Ruthie gives Matt a picture with her on his lap while he is Santa and a pair of fuzzy dice made out of her old stuffed animal. Annie opens up her present from Eric and finds a chain for her pendant. Eric offers to get the cross, but Annie tells him to wait until he sees his gift. Eric opens his present and sees the jukebox. Annie tells him that it just needs his records. At 5:00 in the morning, Ruthie opens the front door to "Santa", Rocky, giving them presents to give to Eric and Annie. Ruthie runs upstairs and Simon tells her that it was his present for her to restore her believe in Santa.
At the church, the live nativity scene is at the front of the church, which happens to be the Camden family. They all discuss how the cast dropped out and it is because they called and asked them if they can be the nativity scene. Ruthie is the angel and presents the nativity scene to the congregation.