At the mall, Shifty is dressed as Santa Claus while Lifty as an elf. They are hosting a toy drive "for charity" (actually for themselves) as people bring in their toys. Rip and Torn arrive and sadly give up their toys. Due to the low amount of toys in the toybox, Lifty and Shifty quit. However, they find Cub writing a letter for Santa to the North Pole. Shifty gets the idea to rob the ultimate toystore.
The two raccoons climb inside the mailbox and wait. Finally the mail truck arrives and picks up the letters, along with Lifty and Shifty. Later at the post office, Lumpy reads the letters and sees that all are for Santa, so he brings them to the harbour in a crate. A ship picks up the crate and sails to the north. Lifty and Shifty snicker inside the crate, but soon feel cold. They eventually start shivering, as the boat had finally made it up north. The captain, Tusky, decides to take a break and prepares to tan on the ice.
Lifty and Shifty decide to continue their quest on foot. Hours later, they are stranded in the tundra. Lifty gets frostbite and his fingers turn blue-purple. He blames Shifty for forgetting the snow gear, so he tries to give him the finger, only for his middle finger to fall off. Shifty points and laughs, but his whole hand comes off. Their bellies growl with hunger and they see a light, coming from Igloo and Puffoo's picnic. The twins barge in and take all their food, causing Igloo to flip out and attack them as Puffoo eats a fish.
The twins jump off an iceberg and float away. Soon they lie on the ice, cold and hungry and complaining. Suddenly, the iceberg crashes into a pole. They have made it to the North Pole, and see Santa's workshop up ahead. They rush inside and interrupt the elves' work as they steal all the toys with glee. One elf dials the phone and calls the boss.
Lifty and Shifty walk out with a sack full of toys. Shifty gets tapped on the shoulder and they turn around to find Santa Claus looking at them. However, they chuckle assuming he is just another person in a costume. To prove it Shifty pulls off his beard, ripping off his face. It is then they discover he is the real deal. Santa grows back his face and hovers in the air to his flying sleigh. He pulls out a cannon and starts shooting coal at the interlopers.
Having made it to the top of Santa's naughty list, Lifty and Shifty run for their lives. A lump of coal hits Lifty's scalp and burns it. He dips in a hole in the ice too cool down. An orca beneath the ice bites on him and Shifty helps by pulling his tail, only to rip off his tail and skin. Shifty continues running as coal shoots at him. He takes cover in a cave and snickers in relief. Unfortunately, Igloo was in the cave and still upset about earlier, so Shifty ends up being mauled. Santa has Rudolph turn on his search light to look for the theives, soon discovering Shifty's fedora outside the cave.
On Christmas day, Rip and Torn walk to their tree and open their presents. Rip finds Shifty's fedora in his gift box, while Torn sees a raccoon skin hat made of Lifty's skin and tail. They put their hats on with holiday cheer, unaware of Santa Claus staring from outside their window. After letting out a "Ho,ho,ho!", he marks Lifty and Shifty's names off the naughty list.
"Be good for goodness sake!"
- Lifty is eaten by an orca.
- Shifty is mauled by Igloo.
- This is the debut of Santa Claus, Tusky, Igloo and Puffoo. This is because they are all based on the North Pole.
- The elves resemble Cub, but with normal pac-man eyes.
- The moral is part of the lyrics of Santa Claus is Coming to Town.