When a pretty female petty officer is arrested by the MP's for impersonating a Salvation Army 'bell-ringing' Santa & pocketing the cash, Harm is assigned as her attorney. However, since she has a history of unauthorized absences, she is ordered to be held in custody. But with the holidays, the brig & pre-trial detention center are unavailable, she is estranged from her father, so she must spend the holiday with Harm or with Mac.
Cmdr. Ted Lindsey (as the SecNav's administrative assistant) notifies Bud's brother Mikey that each year, the SecNav nominates 170 enlisted personnel for admission to the Naval Academy and that Mikey is being considered for one of those nomination spots. Bud & Mikey's father, a retired Master Chief though is not at all thrilled with having another son becoming an officer and insures that everyone knows it.
PO Tiner notifies the Admiral of a lawsuit filed against the Navy by Rudolph, Dasher, Dancer, et al. It seems a group of reindeer broke through a runway fence at the Naval base in Iceland and for their safety were corralled by the base security personnel. But when the news is broadcast by ZNN, children in New York were very upset that the reindeer will not be able to take Santa on his yearly trip. One of the children's father happens to be a lawyer and files a federal action lawsuit against the Navy, requesting an emergency order to release the impounded reindeer.
Harm & Sturgis finishes Harm's built from scratch 1968 Corvette, but it still lacks the convertible top. When he discovers the car missing, he is stunned to believe that he has had two Corvettes stolen. After filing a stolen auto report, he is later called to a location by the police who have an identical Corvette that has been stripped, but when Harm sees the auto-transmission gear shift, he realizes it isn't his vehicle, since his has a manual transmission. In the end, it turns out not to have been stolen afterall; with Harm receiving a very special gift for it from his best friend.
At midnight Christmas Eve services, Cmdr. Turner's father (a Navy chaplain) delivers a sermon on Joseph (from the Bible), which gives everyone a chance to reflect on the true meaning of Christmas and the importance of family.
Harm makes his annual Christmas Eve visit to the Vietnam War Memorial to visit with his father and while at the Wall, he receives a very special gift from Clayton Webb.
Mac & Harm meet under the mistletoe.