An hour-long animated special based on the holiday song of the same name. The special revolves around the Spankenheimer family, especially Jake and his grandmother, who run a general store in Citytown. The store is the only place left in town not owned by Austin Bucks, a Christmas loving businessman who plans to make Christmas easy for the residents by overly commercializing it, even though Grandma says that is not the best idea for how to spend it, and refuses to sell out, to the objection of crazy cousin Mel. Jake meanwhile is stuck into a conflict of his own with his sister Daphne and their parents, who doubt the existence of a Santa Claus. When grandma goes out on Christmas Eve night, she is struck by the man himself after too low a fly and winds up senile and amnesic. One year later, Cousin Mel decides to become the attorney in Grandma's case when Santa is sued for the accident figuring that with the amount of money a figure as powerful as Santa has, it may be the key to selling the store.