When Reverend Lovejoy and Ned Flanders are unable to deliver the Christmas sermon, Homer steps in and tells the story of the birth of the baby Jesus (Bart), King Harods (Mr. Burns) attempt to have the baby killed and the creation of the first Christmas tree.
Grandpa relates to Bart and Lisa the story of how in the Navy he and his older brother Cyrus were fighting in the Pacific in World War II. During a battle Cyruss plane is lost and Abe and Mr. Burns (his co-pilot) crash land their own plane. At Christmastime while awaiting rescue, Burns, anxious to shoot at something, shoots down Santa Claus. Abe and Burns help Santa to rebuild his sleigh (only for Burns to later steal.) After Abe gets it back, Santa promises to come back for a follow-up rescue, but never does. After Abe has finished relating the story to the kids, Santa makes his overdue appearance and takes Abe to Tahiti to be reunited with his brother.
The kids at Springfield Elementary perform Perhaps the worst version ever rendition of The Nutcracker ballet according to Superintendent Chalmers. When it is revealed that you dont have to pay for the music rights it leads to a montage of citizens of Springfield going about their usual Christmas activities to the more familiar pieces of music from The Nutcracker, including a sequence where Moe tries to hug himself, and Homer (forgetting as usual) tries to get Marge her present at the last minute.
The Simpsons focuses on a family of five. There is the father, Homer, a dull-witted, alcoholic, lazy, but lovable man. He often gets his family into crazy situations but always manages to fix things. The mother, Marge, is a stay at home mom who keeps the family together. She is the ideal wife and mother though she can be a little naive at times. She always does what she thinks is best for her family.
Next is Bart, the 10 year old boy who lives on playing pranks. He gets into a lot of trouble but is generally a good kid. Then there is the neglected middle child, Lisa. Lisa is the brain of the family and sometimes feels left out because of that. She is an outcast at school because of her talent. Finally there is Maggie the baby. Though she doesn't say much she is well known especially for her red pacifier.