It is Christmas Eve and the agents at T.U.F.F. are decorating T.U.F.F. headquarters. Just as The Chief was playing Santa (getting squashed in the process), Dudley talks to Kitty about what he wants for Christmas this year: a race car bed. Then the Intel alarm goes off which turned out to be Snaptrap stealing an old lady's purse. Snaptrap, who has never even heard of Christmas or Santa, was put in jail with Bird Brain and The Chameleon. They decide to go to the North Pole, kidnap Santa and steal the children's presents. The evil trio tried to drive up to the North Pole with Bird Brain's uncle's truck, but after a worldwide blackout caused by Keswick's Christmas lights, caused Bird Brain to crash his uncle's truck. Then, the Chameleon mentions how T.U.F.F. headquarters has a phumomatic tube system that allows T.U.F.F. agents to transport to different points in the world including the North Pole. After disguising himself as Santa and smuggling Snaptrap and Bird Brain in a sack, they tricked the T.U.F.F. agents to allow them to use the tube system to get to the North Pole. After Bird Brain activates a laser birdcage, the three villains proceed to go with their plan, and Bird Brain announces to the villains that Christmas is doomed.
Snaptrap, the Chameleon, and Bird Brain then lock Santa, his elves, reindeer and Mrs. Claus in a closet. Santa then contacts T.U.F.F. headquarters for their help because if Santa doesn't start his delivery before midnight, the reindeer's flight magic will wear off which means no Christmas this year. Dudley and Kitty reach the North Pole and break through Bird Brain's security cage and tried to sneak attack which doesn't work. The bad guys then tie up our heroes to a conveyor belt that leads to a giant hammer in the defective toys division of Santa's workshop. After stopping the big hammer with one of Keswick's holiday inventions (a fruitcake), the T.U.F.F. agents then catch the bad guys destroying the last presents and fleeing the scene. Dudley then stops the bad guys escape by lassoing then with Christmas lights, but it was too late for Santa to do his deliveries and all the presents are destroyed. Just as all hope was lost, Keswick and the Chief immediately flies to the North Pole with the T.U.F.F. Jet. The elves also immediately remake all the presents. The T.U.F.F. agents help Santa make his deliveries across the world. At the last stop, however, there were no more presents to give to the last kid. It turns out the kid wanted the same race car bed Dudley wanted, so Dudley willingly gives away his racecar bed. Dudley goes home disappointing that he didn't get the race car bed he wanted, but then Santa comes in and gives him the newer version of the racecar bed Dudley wanted for his sacrifice.