The episode begins on a clear starlit night, at the Happy Tree Friends' school in the middle of the forest. Generic Tree Friends fill the auditorium, where onstage Bulky lies in a bed in front of a set resembling a bedroom. Offstage, Chopstix, the director, motions for Eli to walk onstage. Holding a candle, Eli moves to the center of the stage when a spotlight shines several feet to the left of him. Chopstix gets Long Haul's attention, and Long Haul, himself, who is operating the spotlight, moves the light onto Eli. Choptix then motions up to Applejack and Nippy, who stand above the stage. The two begin shaking an upside down, and obviously upset, Otus, his feathers acting as snow in the background. With everything in place, Chopstix motions for Eli to start singing.
Eli begins singing "O Tannenbaum", while Boz, Josh, and Wooly come onstage dressed in cardboard cutouts of a present, a candy cane, and a Christmas tree, respectively. From Bulky's point of view, however, he can only see the top part of Josh's candy cane costume. The spotlight makes the costume look like a divine treat. Eli stops singing upon hearing a crunching noise and a scream. Everyone looks over to see Josh with a big bite mark on his costume and torso. Everyone looks over to see Bulky lying in bed with blood on his face, giggling happily, unaware that he just consumed cardboard and flesh rather than a candy cane. A scared Eli looks over to Chopstix, who tells him to keep singing.
As Eli begins singing again, Josh runs offstage and gets the curved part of his costume caught on a rope. This causes a sandbag to drop and knock Boz's costume off his body. Unfortunately, this also cuts his face off, which lands at Eli's feet. Horrified, he looks back to Chopstix for guidance. Once more Chopstix motions Eli to keep singing.
By now, Eli can barely sing as he sobs in fear. Boz runs around the stage in a panic, until he slips on his own face. Boz's face flies up and hits Long Haul in his face, causing him to swing the spotlight over to Applejack and Nippy. They throw up their hands to shield their eyes and yells "Ouh!", dropping Otus in the process. He falls down through the chimney in the set and, as his feathers poke through the set, emerges out of the fireplace, missing his skin. Eli and Wooly becomes extremely terrified and look over to Chopstix yet again. Chopstix, scared himself, is climbing out the window. Wooly and Eli runs away offstage, but not before Eli tosses his candle in the air.
The candle lands right by the curtains, setting them ablaze. Crafty screams in fear while everyone starts panicking and running from their seats. Wooly is the first to reach the door, but in all the confusion he forgets to remove his costume. He gets stuck in the doorway, while numerous Generic Tree Friends run against him, trying to get out. Eventually, Wooly is forced out of the face-hole of his costume, squeezing his head into a red, cylinder-shaped glob of blood resembling a Slinky as it bounces down the stairs. Finally his costume breaks and the audience comes flooding out of the school.
Lumpoo stands next to Chopstix, the entire right side of his face (and antler) burnt. Chopstix starts clearing his throat and sighs (after one of the Generics run away with fire all around him/her) before looking around at the damage. Long Haul's cane has impaled him through his eye, Minttles is burnt and bruised, Trixie is screaming in pain as a Christmas star is lodged in her head and her left fingers (minus his thumb) have been cut off, and slowly, Wooly weakly raises his hand. Blood and organs are everywhere.
Bulky appears to have been lightly burned, crying as well, and has some blood on his fur (though it's not clear if its his or it belongs to someone else). Otus kneels on all fours, freezing without any skin. In the background, Licky tries to comfort a burnt Generic Tree Friend while a flipped out Bowser stabs another Generic Tree Friend. Boz laments the loss of his face, Josh looks nervously at the gaping hole in his torso, and Bonny stares horrified as she is now missing both of her feet.
Nelson Muntz stands off in the distance (strangely seeming undamaged), and Nippy drags a wailing Applejack (who is missing the bottom half of her body) away. Everywhere dead and dying Generic Tree Friends litter the ground. Behind Eli, Mia lands in the middle of it all, apparently having been alerted by the Tree Friend's screams, yelling, shrieks and crying.
Eli starts facing down at the snow upsetly thinking about what he had triggered after he threw the candle away accidentally moments ago, but as a shooting star flies by in the background he straightens up, determined. Once more he begins singing, and everyone looks up. The cries, shrieking and whimpers stop and everyone smiles, moved by Eli's singing (except for Bowser who continues stabbing his victim). Chopstix is even moved to tears by the sound of Eli's voice. Suddenly, everyone starts joining hands, and bones around the burning school, joining Eli in his song. Boz joins hands with Charlie, as well as Lumpoo with Otus, and Crafty with Licky. As the camera pans up to the clear night sky, where a bright star shines brilliantly, a loud explosion is heard, and bodies are sent flying into the air.