Later that Christmas Eve night, Baby Lamb is worried if he's starting to disbelieve in Santa Claus. But he's caught by surprise once he finds Thomas the Tank Engine pulling the Polar Express and taking children to the North Pole. Baby Lamb is excited, so he went to get his friends. But when they came back, the Polar Express is already gone, and Baby Lamb was disappointed. Ricky finally loses it and tells the others that Santa Claus is the main reason why Christmas is nothing more than a cheap marketing tool and a target for commercialism, so nobody thinks the holidays are all about seasonal merriment and goodwill.
Baby Lamb realizes that debating about Santa got in the way of celebrating a traditional Christmas, so he decided to set things straight and tell Ricky that the greatest gift that Santa doesn't have to deliver under the tree, is the gift of friendship and the love that comes with it. That's when the real Santa Claus comes to tell everyone how proud he is of not losing sight of what makes Christmas special. So, with a little Christmas magic, everything becomes a lot more Christmasy. Eventually, Mark does a Christmas act of kindness when he put a shiny gold star on top of the town Christmas tree, thus changing his bad way for the holidays. The Crew is proud of him and his Christmas spirit, where they learn that Christmastime is the moment to feel very young. As this holiday special comes to a close, and snow is falling, and the song "Keep Christmas with You" plays in the background, I give a little message to everyone. So, Merry Christmas to all, and to all a good 364 days until next Christmas.
Twas the night before Christmas, and Baby Lamb couldn't sleep because he's still wondering if there really is no such thing as Santa Claus. He then hears train sounds and goes outside to see Thomas the Tank Engine, who's in charge of pulling the Polar Express and taking children to the North Pole to see Santa Claus. Baby Lamb's excited and decides to wake up the rest of his friends to tell them about the Polar Express. But by the time they came, Thomas had already left and they were too late. Baby Lamb was disappointed and Ricky is super furious that he shouts at them saying, "WILL YOU GUYS CAN IT WITH THE WHOLE SANTA THING!?!?" Ricky then shames them for believing in Santa and say that he's the reason Christmas is so commercialized and people depend on presents so much. Baby Lamb had enough and says Ricky is going too far, but he disagrees feeling that parents talk about Santa just so they can get kids to behave and make them feel crappy if they misbehave. After that, he tells Baby Lamb to grow up and that Christmas is already a big bust because everyone's out in the cold on Christmas Eve night for nothing.
He angrily leaves everyone behind, and Baby Lamb begins to feel bad. Instead of being kind and caring to one another on Christmas, the whole time they were debating and arguing about Santa's existence. Baby Lamb comes to Ricky and tries to make amends with him as everyone agrees that Christmas is all about family and friends, not really Santa Claus. Baby Lamb says the most important gift of all is something not even Santa can bring, and that's the irreplaceable gift of friendship. Ricky is awfully touched and apologizes for his behavior and let everything get out of hand, but now he really knows what Christmas actually means. Cow says that even if he gets nothing for Christmas, he will still be very happy. Baby Lamb agrees and says that even if he gets coal, he will still be smiling.
All of a sudden, a voice is heard and by magic, the gang are dressed in festive Christmas clothing. Sleigh bells are heard, a "Ho Ho Ho" is said up in the air, and no one but Santa Claus himself comes down! Baby Lamb is surprised as Santa introduces himself. Although bygones are bygones, Ricky still can't help but see if Santa is real by asking him what he wanted for Christmas 3 years ago. Santa says Ricky wanted an educational VHS tape of "Doghouse Rock". Ricky is amazed because that's actually what he got, meaning that Santa Claus really IS real! Right away, Ricky apologizes to Santa for talking smack about him all this time. But Santa doesn't mind, because he doesn't mind people not believing in him. He started out as a thought in parents, and was created by imagination. Santa came because for the first time in 13 years, he noticed a rapid increase in Christmas spirit and wanted to find out where it came from. It was from the gang who discovered the true meaning of Christmas, and Santa's proud of every single one of them, especially Ricky.
Santa announces that they all have landed permanent spots on his nice list. But Baby Lamb mentions how sad it can be for kids when Christmas ends, so Santa says you can make it last all year by keeping its spirit close to your heart. Santa then prepares to leave to continue delivering the presents before Christmas, but not before he says "Merry Christmas to all and to all a good night!" All of a sudden, it starts snowing in Capitol City and Cow really thinks that anything is possible if you believe. Ricky admits this is the best Christmas of his life, and Mejax agrees that Christmas should be better off celebrated once a year. Meanwhile, the star on the Town Square's Christmas Tree is small and falling off. Mark, filled with goodwill, finds a bigger, shinier, and golden star and puts it on top of the tree, making it look even better. The crew is surprised at Mark's new personality but he explains that he learned that since Christmas comes once a year, you have to make the most of it. They are touched and give Mark a present from Santa himself: a brand-new police chief hat. Mark is exceedingly happy and Patricia kisses him under the mistletoe, stuck to Cow's face. In the end, everyone joins together to sing "Keep Christmas With You" as the story comes to a conclusion and the creator wishes everyone a very Merry Christmas.
- Baby Lamb
- Ricky Bowers
- Alphabet Pal
- Belle Butterfly
- Donny Dolphin
- Santa Claus
- Officer Mark
- Officer Patricia
- Officer Marvin
- Officer Aaron
- Officer Derek
- Thomas the Tank Engine
- Mickey Mouse
- Minnie Mouse
- Roger Rex
- Elmo (recording from Elmo Saves Christmas)
- I'm Just a Bone
- Keep Christmas With You
- Santa Claus yells the famous Goofy holler as he drops to the ground.
- Baby Lamb's Christmas outfit references that worn by Arthur in the Christmas movie "Arthur's Perfect Christmas".
- "Doghouse Rock" is a parody of Schoolhouse Rock and the song "I'm just a Bone" references "I'm just a Bill".
- The Creator reveals his face for the first time ever in this episode, referencing the revealing of Lynn and Rita Loud's faces in The Loud House Christmas special "11 Louds a-Leaping".