On a snowy winter day, Waddles builds himself a snow fort. He comes to a pile of snow, which Spot jumps out. Waddles runs for his life with Spot chasing him. Looking through a periscope, Arcticus spots the penguin in trouble and Icy decides to help out. Waddles hides behind a bush, only to fall down a trap door. He is brought to a secret underground lair and Icy introduces himself and his teammates to him. They quickly becomes friends and Waddles invites them for a visit in his home.
The penguins enjoy hot chocolate at Waddles' table as Icy tells them his tales of the war. A knock is heard at the door and Freezer answers it, getting captured in a net by Spot. Just as Spot prepares to enjoy his meal, Freezer jumps out of the net and mauls him. Spot crawls out of the struggle, and Waddles pours some scalding hot chocolate on him. Icy, Eggy, and Arcticus blast him away with a torpedo.
After landing in the park, Spot realizes he will need help to defeat those penguins. He finds another seal, Flipper, sleeping on a nearby bench and gets him to be part of his team. Later, Waddles and his Eggy go out and frolic in the snow, but Spot calls them from his snow fort. Eggy whistles and calls his teammates, and they build a rival snowfort for war.
Freezer makes snowballs with grenades inside and throws them at the enemy. Spot and Flipper are terrorized by the attacks, until Spot discovers a nearby snowman. He takes the snowman apart and forms it into a giant snowball, then flings it at the penguins. It destroys their fort but everyone is alright, except Eggy who got impaled by the snowman's carrot nose. Icy and Waddles decide to avenge Eggy's death, and Arcticus builds a new invention: a snow cannon. They fire it and a huge ball of ice falls toward Spot. He sees Flipper asleep holding a flamethrower and tries to grab it so he could melt the ice ball, but Flipper wouldn't let go. The ice ball lands and sparks a huge explosion of snow.
Waddles, Icy, Freezer, and Arcticus celebrate their victory by having a feast of Spot's meat. Outside, Flipper is seen asleep, unaware of his partner's death. He wakes up and discovers an ice palace around him, made from pieces of the ice ball.
- Eggy is impaled by a carrot.
- Spot is cut apart by ice.
- This is the debut appearance of Icy, Eggy, Freezer, and Arcticus.
- Slushie makes a brief appearance, being shocked when he saw Spot take the snowman apart.
- This marks Spot's first kill.