Come the holidays, Gomez is putting up mistletoe and almost ends up kissing Fester by mistake. Morticia comes in and the happy couple checks their presents. Lurch brings in a present from the Maharajah: a basket with a flute and turban. Morticia confirms that it's a Hindu rope trick, but Gomez doesn't have much luck getting the rope to rise. Wednesday and Pugsley come in and says that Mr. Thompson, their neighbor, told them that there's no such person as Santa Claus. Shocked, Gomez and Morticia assure them that Santa really does exist.
The children go to see Fester, who is setting up the Addamses' Christmas tree. He assures them that Santa does exist, as Gomez and Morticia listen in. Once Wednesday and Pugsley leave, the couple thank Fester for playing along, but worry about what will happen if Santa doesn't show up. Morticia decides to put together a back-up plan, and decides that Fester will pose as Santa. He's not happy with the idea, considering himself too young and glamorous to pose as Santa, but quickly gives in when the couple point out that Wednesday and Pugsley could be scarred for life.
After going to a costumer, Fester returns with a bow & arrow for Pugsley, and a Marie Antoinette doll for Wednesday. However, when he tries to climb down the chimney, he gets stuck.
Inside, Gomez and Morticia are trimming the tree and figure that Fester stopped to get presents for the children. Pugsley and Wednesday come looking for Santa, and wonder if he got stuck in the chimney. When their parents assure them that Santa is an old hand at coming down chimneys, the children prepare him a warm welcome... by stoking the fire. Fester is less than amused.
Later, the Addamses are celebrating with Morticia, Lurch, and Thing performing a Christmas family. Once they're done, the children figure that if Santa was coming, he'd be there by now. Once they go to bed, Morticia figures that the children need a Santa. Everyone gets the same idea and comes up with their own plan. Gomez goes out and finds a mission Santa Claus on a street corner. The Santa admits that he hasn't received many donations, and agrees to rent Gomez his suit for twenty-five. He's surprised when Gomez casually hands him $25,000, and is soon wearing Gomez's suit and promising free turkey dinners for all of the homeless.
At home, Wednesday and Pugsley are writing a letter to Santa assuring him that they still believe in him. A disguised Gomez climbs up and knocks on the window, and the children eagerly let him in. Gomez gives them the bow & arrow and the doll, tells them to remember that there is a Santa and leaves the way he came. Unfortunately, he slips and falls onto the ground below.
As the children examine their presents, a disguised Grandmama knocks at the hallway door. They let her in and recognize her, but she insists that she's Santa and gives them a bow & arrow and a doll. Once she leaves, the children go downstairs to see if Santa left them any presents under the tree. Lurch has dressed up as Santa and the children recognize him as well. He insists that he's Santa but they figure that the adults are up to something and says that they don't want any presents. Once Lurch leaves, Cousin Itt comes in, also disguised as Santa. Itt gives them a bow & arrow and a doll, and leaves, and a disguised Morticia comes downstairs dressed as Santa with their presents.
Wednesday and Pugsley note that they've seen several Santas, and the disguised Gomez and Grandmama come in. Morticia claims that their imposters and rings for Lurch to remove them. He's still in his disguise, and Itt comes out as well. As they argue, Fester finally makes it down the chimney, He says that the other Santas are his assistants and gives a bow & arrow and a doll to the children. When the adults realize that their plan hasn't worked, they remove their fake beards. As Wednesday and Pugsley wish that the real Santa had come, the family realizes that someone has finished decorating the tree and left presents. There is snow on the floor even though it isn't snowing outside. As the Addamses check the tree, they hear Santa wishing everyone a merry Christmas as he rides off into the sky.
Later, Morticia performs a musical number for Gomez on the bass fiddle that he gave her, while Gomez lights up with his new cigar lighter. Fester comes in and assures them that he got Pugsley the chemical set he wanted, and showed him how to make gunpowder. As an explosion brings down the plaster, Morticia says that there's only one thing missing. She goes over to where the rest of the family is sitting and they sing "Merry Christmas" to the viewers at home.