With Xmas approaching, the Planet Express crew begin to fortify the building to stop the Robot Santa from gaining entry inside. With the Professor's new bulletproof shutters having been installed, which encase the entire building, it appears the crew is safe, unless they are stupid enough to leave the safety within. The crew is informed that they have a delivery to make, one to Santa himself at his death fortress on the planet Neptune. Reluctantly the crew go on the delivery where Fry reminisces about the way he remembers, explaining Xmas should bring people together not blow them apart. The crew decides to take on the Robot Santa and make Xmas a better time for all.
Arriving on Neptune, they discover Santa's village to be in decay. With the closing of the toy factory, everybody was out of work. The Neptunian people are starving. Fry, Bender and Leela hide in the sack of letters as they are delivered up to Santa in his fortress. Leela's plan to destroy the Robot Santa is to use a logical paradox. With Bender covering his ears, the trio surprises the Robot Santa by jumping out of the sack and delivering the message. Unfortunately Robot Santa is not destroyed as he has paradox absorbing crumple zones protecting him from the explosion. The crew escapes back to the ship just ahead of the Robot Santa who is in close pursuit.
With the crew aboard the ship, Leela attempts to leave, but something is preventing them from leaving. Outside we see it is Santa who has a firm hold on the ship. The heat from the engines cause the ice at Santa's feet causing it to melt. Santa slowly sinks into the melted ice and when Leela stops the engines, it quickly freezes over to trap him.
The factories are reopened and toys are again made at the factory and Bender is conscripted to make the deliveries. Unfortunately Bender is not received well at any of the residences he visits, mistrusted by all. Quickly growing tired of his assigned role, Bender decides to dump the rest of the toys into the sewer. While resting and taking a drink, Bender is arrested by the police, believing he is the real Santa Claus.
Back on Neptune, Leela cuts the Robot Santa out, leaving him encased in a solid cube, so that he can be taken back to Earth to prove Bender's innocence. But due to the greenhouse effect caused by the reopening of the factory, the temperature has risen allowing for Robot Santa to escape. The crew flees back to Earth with an unknown passenger, the Robot Santa clinging to the hull.
As a last-ditch effort to stop Bender from being executed by a electromagnet, Fry, Hermes, Amy and their Professor all enter and claim to be Santa. Their ploy is not successful and Bender's execution is begun. Just at this moment the real Robot Santa smashes his way into the room, destroying the execution device. He asks Bender for help to save Xmas and help him complete his brutal rampage.
With the crew in a tight huddle, Fry realizes that it was fear that has brought everybody together and with the job done, the Robot Santa warns Bender never to play Santa again or he will be killed next year and pushes him out of his sleigh.