Only 6 days until Mickey and Maggie celebrate their first Christmas in Brooklyn Heights with their new friends. While Maggie is bakery sitting for Anita, James finds out that Maggie has bought him a very nice and expensive gift (an auto, remote control answering machine). This only leads James to feel bad because all he bought Maggie was a pair of mittens.

With not a lot of money to spend, James gets a job as a store Santa to earn extra money to buy Maggie a nicer Christmas present, a necklace. But at the final minute, the Christmas spirit hits James and he gives the necklace to his poor elf assistant's husband so he can finally give his wife a nice gift for the holidays.

On Christmas Day, Maggie surprises Mickey with a tree full of toys from Santa. Then James shows up to give Mickey a sled and Maggie a song he wrote especially for her the night before.