In this episode, it is another Christmas at the Possible family household, which means it's an incredibly elaborate one. Even Nana Possible is involved. Despite the fact that he's Jewish, Ron also enjoys celebrating Christmas with the Possible family, and also enjoys the Christmas special "The Six Tasks of Snowman Hank." This year, however the Christmas special is cancelled, and replaced with a winter extreme sports special called Xtreme Xmas, and Ron is devastated by this. That is until Kim cheers him up by giving him an early Hanukkah present.
During Kim's Christmas carolling, Wade beeps in to check on her, then finds that Shego stole a sophisticated battery for Drakken so he can take over the world in a rocket called "Drak-Force One." What Drakken doesn't realize is that Shego has made her own vacation plans, thereby leaving Drakken to take over the world on his own. Seeking to give Kim a better gift than some Bueno Nacho coupons, Ron decides to let her spend Christmas with the family and tries to stop Drakken by himself. Managing to get a boat captain to give him a ride to Drakken's lair, Ron breaks in much more easily than he expects, and though he manages to take the battery after the rocket is launched, he's caught by Drakken and they fight over it. During the fight, Drakken and Ron crush the Kimmunicator, launch all the escape pods, and end up setting off the self-destruct mode. Out of desperation, Drakken suggests that they use the garbage disposal as an escape pod, and they come to a landing in the arctic. While there, Ron & Drakken blame each other for getting them stranded. The argument elevates into a snowball fight, and Drakken almost throws his cell phone at him, until Ron recommends using it to call for help. However, since he's a villain, rather than calling the authorities, Drakken calls Shego instead, who's clearly disinterested and would prefer some time at a beach resort. Drakken instead leaves a message in her voice mail box, but not before finding Ron rummaging through the trash for food that he wants. Both start fighting again.
Meanwhile as the Possible's are performing the Christmas skit, a parcel delivery man knocks on the door with a present for Kim. This present turns out to be a new Kimmuncator from Wade, which he urges her to open early. Wade reveals that Drakken was plotting to take over the world and Ron tried to stop him on his own, but that escape pods from Drakken's rocket are scattered throughout the globe. Kim cuts her holiday short and desperatley tries to find him. The first pod is in London, She's flown there by Nakasumi and Miss Kyoko, and is greeted by the London Police Department, but Ron is nowhere to be found. The same goes for the Mediterranean Sea, some non-descript mountain range, and the deserts of Egypt. The last stop is the Amazon Rain Forest, where Kim learns that a distress signal is coming from. At this point, the only thing keeping her from reaching the pod is a high tree, and an anaconda that nearly strangles her to death. Much to her surprise, the family comes to her rescue. While Kim resumes finding Ron, Jim & Tim request using her Kimmunicator to watch Xtreme Xmas. As Kim finally enters the last pod, she finds the "distress signal" is merely a monkey randomly playing with the buttons.
Drakken negotaites with Ron over a half-eaten chicken leg, and Rufus suggests trading his cell-phone for it. As Ron makes his emergency phone call, he and Drakken face a polar bear and flee back into the garbage pod. The bear pushes them off a cliff and they survive, but continue to argue. During this argument Drakken reveals that like Ron, he too is a huge fan of "Snowman Hank." But when Ron informs him that it was cancelled, he takes the news almost as hard as he does, if not harder. Both vow to keep the memory of the Christmas special alive. Meanwhile on that previous bech resort, a cabana boy offers her some perks and claims that "a gentleman" offered to pay for her vacation, then gave her a message. It turns out to be Drakken, and she checks for the voice mail message Drakken left earlier, which means she's sure to head north. Shego barges into a live broadcast of "Xtreme Xmas," steals a snowboard from an extreme sports athlete, directly in front of the host and starts pursuing Drakken. The host is so impressed by how "extreme" she is, he gets his crew to follow her.
As Kim seems to have given up all hope of finding Ron, Jim & Tim inform her that Shego is on "Xtreme Xmas" trying to track Dr. Drakken down at the North Pole. The Possible's take off again for the frozen north to find Ron before Shego does. Both fight it out on jet-powered snowboards as they're being televised worldwide. Kim runs into a snowman modeled after "Hank" and quickly finds Rufus and Ron there building it. Shego and Kim continue to fight each other, and the Xtreme Xmas host tries to exploit their battle for entertainment purposes. But Drakken breaks up the fight and invites them over for Christmas dinner, where Kim kisses Ron under a substitute for mistletoe. None of the Possibles, nor Shego know what to make of the situation, but they all go along with it anyway. However Drakken cheerfully vows to end the truce afer the new year, and "open up a bag of freak on all of you." But for the time being, heroes and villains alike sing the theme to "The Six Tasks of Snowman Hank" in celebration of the holidays.