Two talking stars narrate an account of the gang's events during the week before Christmas. Brenda, Kelly and Dylan decide to be friends, but the arrangement falls apart after both girls make out with Dylan. Andrea is accepted to Yale, but gets dumped by her boyfriend. Nikki tells Brandon that she is moving back to San Francisco. Brandon and Andrea share a kiss while watching "It's a Wonderful Life", but accuse each other of thinking about their exes. David is depressed about his mother's move to Portland and the fact that he will be left behind when everyone graduates. Everyone tries to back out of a trip to distribute gifts at an elementary school, but Donna and Mrs. Teasley force them to attend. Steve, who is forbidden from extracurricular activities as part of his probation, drives to the school on his own. The talking stars must prevent a fatal accident involving the school bus and a drunken garbage man, but divine intervention seems their only hope.

Jerry goes on a date with the model from the plane but gets dumped after the model thinks she sees Jerry picking his nose in the car next to her. Elaine sends out a Christmas card that shows a bit too much of her. George tries to get back together with Susan but immediately regrets it and Kramer heads to Calvin Klein to complain about 'The Ocean', a new fragrance Kramer thinks they stole from him.