Luther and Nora get a call from their daughter Blair to tell them that she is coming home for Christmas - with her fiance Enrique. Nora sticks on her red vest, and they get to work to get Christmas back on track!
Luther can't find a tree, while Nora gets her hands on the last tin of ham - but she fumbles it and it falls under a truck. They have trouble to get anyone to go to their party at short notice, except a friendly stranger in the local store.
Luther tries to put Frosty the fake Snowman back on the roof with the help of little Spike. He slips, falls, and Frosty smashes into a hundred pieces.
The neighbours, previously having bullied them for not taking part, now pitch in to help out -- for the sake of the daughter Blair who they prefer to Luther.
They cancel their own Christmas plans to decorate the house, help with the meal and get along to the Kranks for a party.
The local (very helpful!) cops pick up Blair and Enrique from the airport - but take a detour back to buy time. They also catch a burglar on the way, traumatising Enrique who hasn't seen a burglar before it seems.
Everyone gets to the party - even the kind old stranger who brings along a replacement tin of ham.
Blair and Enrique get to the party. Everyone celebrates. Blair gives a speech to thank everyone. Luther can't bring himself to do the same, for some strange weird. He looks over the road to see his nemesis Walt at home with his wife, alone.
Meanwhile, the burglar sweettalks Spike into letting him go and starts to ransack the house.
Luther takes the tin of Ham to Walt (which was cooked by Nora earlier - so is the tin empty??). Overcome with Christmas feelings, he offers the cruise tickets to Walt and his wife, and convinces them to take it up.
Walking back to the house he sees the burglar escaping - he gives chase, but it is the kind stranger Marty who saves the day and the burglar is apprehended. Marty is dressed as Santa, and tells Luther that he needs to get back to his job selling umbrellas - and that he has a busy night ahead. He has a glimmer in his eye. No - not like that before you say anything, I mean that he is supposed to be the real Father Christmas!
Marty leaves. Then his old VW Beetle is taken up by reindeers as the credits start.