Kyle's cousin Kyle calculates how naughty Cartman has been this year. Cartman wants Santa to bring him a cool new toy called Haibo. It's a robot doll that you must care for, else it dies. Looking at the naughty/nice balance sheet, Cartman has been far naughtier than nice this year. Cartman searches for a way to be so nice that will adjust the balance back in his favor. He starts by being nice to everyone, which makes Kyle and Stan suspicious. The mayor's speech about Iraq and those less fortunate gives Cartman an idea and gets Stan and Kyle to help him out. Jimmy is set to light the town's Christmas tree, but decides that he wants to sing a song first. Jimmy starts singing "The Twelve Days of Christmas." Cartman has decided to bring Christmas to Iraq. Skeptical that Cartman can pull that off; Stan and Kyle want to know why Cartman is really trying to this. Mr. Hankey arrives on the scene and thinks that Cartman is really full of the Christmas spirit. He suggests to the boys that Santa Claus can help them out. Mr. Hankey uses Christmas magic to whip up the "Poo-Choo Express." He takes Cartman, Kyle and Stan to the North Pole to meet Santa Claus. Meanwhile, Jimmy is singing about the 3rd day. At the North Pole, Mr. Hankey introduces the boys to Santa Claus in his "Fortress of Solitude." They also encounter the underpants gnomes, who work there two months out of the year. Cartman tells Santa his idea, which Santa agrees is good. Santa makes plans to make a special run to Iraq. Meanwhile, Jimmy is singing about the 4th day. Over Iraq, Santa is spreading Christmas cheer, when his sleigh is shot down. Santa crash-lands in the center of Baghdad. The gnomes fear that Santa is dead, but Santa radios in that his legs are broken, all the reindeer are dead and he is very sad. Then the Iraqis take him prisoner and the radio goes dead. Cartman is disappointed that he won't get his Haibo robot doll, revealing to the other boys that that was his plan all along. Stan and Kyle are annoyed with Cartman for ruining Christmas. They think all is lost, until Cartman says "Christ," which gives them the idea that Jesus can help them.
Back in South Park, Jimmy is singing about the 5th day. The boys and Mr. Hankey use Santa's backup sleigh, complete with backup reindeer (Steven, Fluffy, Horace, Chantelle, Skippy, Rainbow, Patches, and Montel) to find and fly to Jesus. Cartman tries having a precious Christmastime moment, which Kyle tells him is not going to get him any nice deductions. It's going to take more than that to make up for Santa being shot down. Meanwhile, in South Park, Jimmy is singing about the 6th day. In Iraq, Santa is interrogated and tortured to find out what he knows about America's plans for Iraq. The boys find Jesus who agrees to go with them to rescue Santa, but first he loads with a little Christmas miracle, automatic weapons. Meanwhile, in South Park, Jimmy's singing has made it to the 7th day. Santa is still being tortured as Jesus, Mr. Hankey and the boys arrive "in a magical Christmas adventure" to rescue him.
In South Park, Jimmy sings about the 11th day. Jesus takes out several Iraqi soldiers and heals Santa's legs as he and the others prepare to escape. Santa takes out a little time to give his torturer a special present. The alarms begin to sound as Jimmy is in South Park still singing away. Jesus is shot by an Iraqi soldier. Before Jesus dies from his wounds, he asks Santa to make sure that they don't take away their Christmas spirit. Santa, Mr. Hankey and the boys make their escape and take to the air. Cartman reminds them why they came here and Santa agrees. He unloads some Christmas filled weapons on Baghdad. Back in South Park Jimmy finally finishes singing his song. He lights the tree the bulbs burn out and Christmas is ruined, that is until Santa flies overhead and brings it to life. Santa has returned the boys home. Santa takes time out to remind everyone that Christmas is a special time of year, but it was almost lost this year, but for the sake of one man. Santa pronounces that Christmas should be a day for everyone to remember that brave man named Jesus. With that, he leaves telling Stan, Kyle and Cartman to look under the tree. They each find a Haibo robot doll under the tree. While it is what Cartman wanted, he doesn't want it now, since Stan and Kyle both have one. Stan comments that it turned out to be a pretty special Christmas, when Kenny joins them and things are back to normal.
Kenny returns in this episode and doesn't die; Jesus wasn't as lucky, but then like Kenny he has been resurrected before.