Ash and the gang are spending the holidays in a house by the sea and they leave their Pokémon to look after things while they run errands. As the Pokémon explore the house, they admire all the holiday trimmings, including party hats, delicious treats and a Christmas tree. Bulbasaur and Squirtle get into a fight over the treats while Vulpix gets stuck in a stocking. Pikachu tries to keep everyone from wrecking the house, but it's too much for one Pokémon. Before long, the Christmas tree is toppled and, when the angry Pikachu uses Thunderbolt, the lights are blown out!
Now Pikachu needs everybody's help to put the house back together. The Pokémon help each other right the Christmas tree and clean up the mess they made; when Ash, Misty and Brock return, the Christmas tree is lit—even if it's being powered by Pikachu's electricity! Trainers and their Pokémon all wish each other happy holidays and enjoy their own party with friends.