The family banana stand was dumped into the bay, a holiday tradition among the local youth. And Michael returns home to share a holiday tradition with his son, rebuilding the banana stand. But first Michael sees his brother Gob, who has taken to wearing his father's suits and annoying Bluth Company employees as company President. Gob is also looking forward to being toasted at tonight's company Christmas party.
George-Michael tells his father that he was planning on spending the night with Ann and her family, which Michael pretends is okay. Up in the attic, George Sr. tells Michael that it's normal for a son to eventually pull away. Then Michael gets a frantic call from his mother. A window has been broken and she suspects a break-in.
At Lucille's penthouse, Michael notices that the glass is all on the outside. So apparently somebody was trying to break out. Maybe it was Oscar setting off on his own yearly tradition -- a 420-mile walk from Newport Beach to Berkeley. Although in the 12 years he's attempted the walk, he's never made it more than a few miles. Michael suspects his mother is lonely. She denies it, then asks him to move in with her.
Buster, meanwhile, tries taking the bus to boot camp but he only has a $100 bill. So he breaks it at a change machine, receiving 400 quarters in return. And then he becomes distracted by a nearby claw machine. While just 20 yards away, Michael repairs the banana stand. Maeby, having nothing to do, drops by to help Michael and he asks her to go to the holiday party with him since George-Michael and Lindsay spurned them earlier.
At the office, a very nervous Gob tries to kick off the holiday party. But employee resentment is running rampant. Michael is beginning to relax, but Lucille arrives in a panic. Somebody broke in and stole all of her liquor. Naturally, that somebody was Gob, who stole it to save on party overhead.
Ashamed that he missed his Army training after becoming hooked on the claw machine, Buster returns home to Lucille's penthouse. Lucille, thrilled to have somebody in the house again, tells Buster there's no shame in being a coward. Buster takes offense and tells his mother that the stuffed toys he's carrying are actually Army prizes for feats like marksmanship and sand racing. And he's just dropping them off before returning to base.
Michael, not wanting to stay at his mother's, calls Tobias and asks him to go over there for the night. And Lindsay finally shows up at the Christmas party, unaware that Gob warned the employees about flirting with his sister. George-Michael also drops in on the party, somewhat creeped out by the ultra-religious Christmas celebration with Ann's family.
Maeby and Michael then kickoff the karaoke with some "Afternoon Delight," which Michael eventually realizes is an inappropriate duet to be singing with his teenage niece. Gob then kicks off the toast, eager to hear what good things people have to say about him. But when he notices that somebody has been sticking lollipops and candy canes on his expensive suit – not knowing it was Michael and Maeby – he fires the entire company.
Michael and Gob try to figure out a way to hire everybody back. Gob suggests a new party. The next day, Michael and Maeby are setting up for the party when Lucille frantically asks for a new housemate. Michael realizes that he needs to find someone to romance his mother. He tracks down Uncle Oscar, who's reluctant to stop his walk, but when Michael suggests maybe Oscar can give Lucille a little "afternoon delight," Oscar thinks he's referring to marijuana and heads back to the penthouse.
The second company Christmas party in two days gets underway. Gob, wearing a giant banana suit, tries to entertain the employees. But, getting hot in the suit, decides to peel off one layer. Lindsay, getting upset that Maeby is spending so much time with Michael, decides to do her own "Afternoon Delight" duet with George Michael. And Lucille, high from Oscar's pot brownies and craving a frozen banana, runs over Tobias and then the banana stand, trapping Gob inside. Buster, playing a nearby claw machine, sees a chance to be a hero. Jumping a giant crane and putting his new skills to use, Buster plucks Gob from the wreckage. However, he hasn't yet mastered putting things down and drops Gob into the bay.
On the next Arrested Development...
The Blue Man Group finally calls for Tobias with a life-changing opportunity.