It's the first Christmas since Doctor Robotnik was defeated and the Zone Leader of the Tower Hill Zone, Basil Poultry, wants things to be just right. The turkey orders his citizens to put the tree, hang the directions and to cook hundreds of mince pies, but things start going wrong when he hears that the carol singers have got laryngitis. Worse still, the tree has woodworm and they're claming squatter's rights! Poultry is outraged, but he vows to pull things together, despite the man hired to put up the lights being afraid of heights. Unfortunately, he loses it when the crackers that have been stored in a damp warehouse have become limp and lost their crack. Poultry goes crazy and staggers off, tiwitching. Tails, who has come to the area for a visit, has a good idea he'd better stick around.
Later, Tails helps put the lights up, giving everyone a better Christmas. However, the miserly Poultry has returned in a battle suit and, determined not to have Christmas without crackers, pulls down the lights Tails just put up. Tails warns him that he can't cancel Christmas, but Poultry's response is to smack him with a robotic arm, sending the fox flying. Poultry continues his spree of Christmas cancelling, ruining all the Christmas cards during a delivery and kicks the head off a snowman, but his fun ends when Tails launches a massive snowball his way. The Zone Leader gets caught in the avalanche and hits a house at the bottom of the hill, trashing his mech. Tails tries to convince Poultry that there's more to Christmas than crackers, cards and snowmen, but he just doesn't get it. It isn't until his citizens forgive him for his nastiness that he realises that it's the Christmas spirit that brings everyone together at this time of year!
- Snowmen aren't really a part of Christmas, more Winter, but Poultry smashes one anyway.
- Poultry isn't sent to prison, despite causing personal damage and assault. That's Christmas!