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After attending the Elementary School Christmas pageant, the Looney Tunes prepare for the holiday season. Granny asks Bugs Bunny and Lola Bunny for their letters to Santa. Lola requests a pony, and Bugs requests a tattoo. The next day, Granny takes them to the mall to go Christmas shopping at a department store in the mall. Bugs slips away to the tattoo parlor and attempts to get a tattoo that reads "Mother". With the tattoo partially completed, Granny bursts in and drags Bugs two doors down to the dermatologist to have it removed. Counting on Elmer Fudd's Christmas bonus, Granny spends all of their holiday money on the procedure. Meanwhile, at the power plant Elmer's boss Yosemite Sam, announces that there will be no Christmas bonus this year.

Elmer, discovering there is no money for Christmas presents and not wanting to worry the group, takes a job as a shopping mall Santa Claus at the suggestion of his friend Henery Hawk. On Christmas Eve, Bugs goes to the mall and harasses Santa, exposing Elmer's secret. After Elmer is paid less than expected for his Department Store Santa work, he and Bugs receive a hot dog racing tip from Henery.

At the Dog-Racing Track, Elmer, inspired by an announcement about a last-minute entry, bet all his money on the 99-1 long shot. The greyhound finishes last. As Elmer and Bugs leave the track, they watch the dog's owner attempt to abandon him for losing the race. Bugs pleads with Elmer to keep the dog as a pet, and he reluctantly agrees. When Bugs and Elmer return home, Elmer attempts to come clean to the family, but all is forgiven with the arrival of the dog who is assumed to be a Christmas present for the whole group.

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