Episode begins with Phoebe telling the others that Ugly Naked Guy is decorating his tree. Joey and Chandler walks in, asks Monica about tipping and Monica replies that she's tipping everyone with homemade cookies, like the mailman, the newspaper delivery guy.. Monica receives her cookie tips back, all smashed into pieces and wrapped up in a newspaper.
In Central Perk, Ross walks in and gives Rachel a slinky. Rachel is still upset by the list and walks away. Ross sits down and shows Monica, Chandler and Joey his Christmas shopping which includes a photo frame, from Ben to Ross' parents.
Phoebe comes in and picks up the photo frame. She becomes excited and says that the guy that comes with the frame is her dad. The others reply that that can't be her real father. Phoebe leaves to go talk to her grandmother.
When Phoebe enters her grandmother's apartment, Phoebe's grandmother is "updating the phonebook", crossing out the names of her friends that are dead. Phoebe questions her whether the man in the frames really is his father. Her grandmother admits that all the photos were a lie and it was Phoebe's mother's idea.
Back in Monica's apartment, Chandler, Rachel and Joey are decorating the Christmas tree. Monica and Ross come back from Christmas shopping and ask if anyone has heard from Phoebe. Rachel says no as they all gather around the table. Rachel tells Monica that the mailman didn't really like the cookies, and shows her a package of ornaments from Monica's mom with the contents smashed to pieces.
Ross approaches Rachel and suggests Rachel makes a con list about Ross to make him feel better about the con list of Rachel. Rachel says Ross is whiny, obsessive, insecure and that Ross puts too much gel in his hair.
Phoebe phones the information directory and asks for a Frank Buffay. Phoebe's grandmother comes back and admits that she wasn't being completely honest before and tells Phoebe exactly where her father lives. She lends Phoebe her cab and tells Phoebe to go find him.
Chandler and Joey plan to take Phoebe's cab to do some late Christmas shopping. Chandler asks Phoebe where the front seat's seatbelt is and Phoebe says that the paramedics had to cut it open.
At Monica's apartment, the heater is too hot. Ross tries to turn the radiator off and breaks the knob off. Rachel calls for the heater to be fixed. Mr.Trager replies that there won't be a new knob until Tuesday.
Outside Frank Buffay's house, Phoebe can't find the nerve to walk into her father's house. In Monica's apartment, the gang have decided to make the party a tropical Christmas party.
Ross talks to a girl about how some gel, the of a pea, can be too much. Monica is giving out ice pieces and napkins. Mr.Trager comes in and Ross begs the girls to convince Mr.Trager to fix the radiator.
Ross caves and offers Mr.Trager one hundred dollars to fix the radiator. Mr.Trager repeats, that the store for the knobs, won't be open until Tuesday. Ross gives up and Mr.Trager asks Rachel if they're standing under mistletoe. Rachel says it's basil and leaves.
Phoebe reaches the mailbox and comes back to the cab. Phoebe explains that she always longs for a cool dad, but she's worried that her father's not really a great dad. Joey and Chandler tells her it's okay.
Phoebe, Joey and Chandler return to the apartment and Phoebe tells Ross, Rachel and Monica that her meeting with her father didn't go so well. Chandler exclaims it's after midnight and it's Christmas. Joey says he couldn't find the knob for the radiator so he turned it off from underneath. Everyone looks at him.
The episode ends with the gang opening Chandler and Joey's presents. Rachel gets a wiper blade and car smell. Phoebe gets toilet seat covers. Ross gets a Cola and a Lemon Lime.