We open with Homer and Marge doing the last-minute Christmas shopping. Back at home Marge tells the family that she has all the alarm clocks, so no one can wake up early and open the presents. Bart drinks a bunch of water so he can wake up and do just that. He plays with his new fire truck and accidentally burns down and melts their plastic Christmas tree and all of the presents.

He buries the evidence in the yard and tells the family that he saw a burglar stealing the presents and tree. They get on the news in one of Kent Brockman's human interest stories. When the town sees them on television, they all come by to give them money. Homer buys a car with the money and wrecks it. The next morning Bart reveals the truth to the family. When Kent Brockman comes by for a follow-up report his crew discovers the torched remains of the presents.

When the town sees the news report, they treat the Simpson family as pariahs. The townspeople decide to make it even by picking their house bare and stealing everything they own.

Hank's mother comes to visit for Christmas with her new boyfriend, Garry. When Hank walks in on his mother and Garry having sex, he goes blind. Garry figures out the problem, and tries to help regain his sight, and they end up at a Faith Healing Church for answers.