It's a sunny day near the beach. Ash, Misty, and Brock enter their house and they plan to spend their Christmas time in it. Ash tells Pikachu that he is in charge when they go to pick up a Christmas cake. When they leave Togepi begins to walk down the hallway. It comes across a door and goes inside it. The other Pokémon follow Togepi and they see the big Christmas tree. Squirtle sees another room and all of the other Pokémon go inside it. The room is filled with party hats and food. They pick up the party hats and they put them on their heads. Psyduck tries to put the party hat on his head but it ends up falling on its tail.

Pikachu and Togepi go back to the Christmas tree again. They look in the ornaments and to see their reflection. Pikachu makes some funny faces when looking at the ornament. Bulbasaur picks up a Christmas cookie from the table. Squirtle begins to pull on the string that's attached to his party hat. Before Bulbasaur can eat the cookie, the party hat pops. Bulbasaur jumps which makes the cookie fly in the air and land in Squirtle's mouth. Bulbasaur gets mad at Squirtle and it starts to chase Squirtle. Vulpix has his head in the stocking. It's taking out all sorts of things from the stocking such as candy and other goodies. Then Vulpix gets its head stuck in the stocking and it can't get it out. Vulpix starts to walk but runs right into a wall.

Meanwhile, Psyduck stares at a Pokémon Cider bottle. Psyduck picks up the bottle and tries to open it with its mouth. Since Psyduck can't open it, it happily shakes the bottle. Bulbasaur is still chasing Squirtle. Now they are in the room with Pikachu and Togepi. Bulbasaur uses vine Whip to get a hold of Squirtle. However, Squirtle runs behind the tree and the vines start to pull the tree down. Pikachu manages to push the tree back up to its normal position. Vulpix flies out of nowhere and lands on the top of the tree. The stocking falls off of Vulpix's head and Pikachu pushes the tree back up again. Still getting chased from Bulbasaur, Squirtle runs in the back of the tree again. It trips over the string of Christmas lights and all of the ornaments start to fall off the tree. The tree starts to fall again and Pikachu is pushing really hard to get it back up. Suddenly, the bottle cork to the Pokémon Cider that Psyduck was holding pops off. It bounces off the walls and it hits Pikachu right in the head. Pikachu falls down with the Christmas tree right on top of it.

Pikachu crawls out of the mess and Squirtle and Bulbasaur laugh at Pikachu. Pikachu gets up and is really mad now. It hurls a Thundershock at them but the attack manages to destroy the lights. Now it's pitch black in the house. Pikachu finds a box and it opens the box. In the box is a Christmas tree with flashing lights and playing some soft music. It lights up the room and everyone stares at it for a while. Suddenly, it stops working and everyone is now sad. Pikachu tells the other Pokémon to help pull the Christmas tree back up.

Ash, Misty, and Brock get back from shopping. They find it to be really dark in the house. When they open the door, the Christmas tree lights go on. Pikachu is supplying the electricity to keep the lights on. Everyone is very happy and they have some good Christmas fun together.