It's Christmas Eve in the Emerald Hill Zone and a sinister character wanders around. He comes up to a child's bedroom and taps, getting her to come over. When close enough, Vile Peter announces that Christmas is cancelled and sucks the child into a tiny jar. However, Peter is confronted by Sonic, who doesn't know any children are missing until several parents run out to report the abductions. Attacked by Peter's magic powder, the hedgehog charges at him but he crashes into a house as Vile Peter disappears. Tails arrives and wonders what's going, until he and Sonic spot that Father Christmas has arrived and captured Vile Peter. Sonic is untrusting, believing Santa to really be Doctor Robotnik in a suit. Ridiculing Father Christmas, Sonic then proceeds to attempt to rip his 'fake' beard off but finally relents when he realises it is real and he really attacked Father Christmas. Santa is forgiving though, and gives everyone their presents earlier after releasing the children.
- Sonic's attack on Father Christmas contradicts earlier story Season of Goodwill, where Father Christmas reveals he cannot be touched in anger, which is exactly what Sonic does.