On Christmas Eve, Fu Dog told a story of two magical creatures who were not having a jolly holiday: a baby sasquatch that had been separated from its family and Jake, who was fed up with his family's embarrassing holiday traditions. Unfortunately, the sasquatch accidentally not only got the public's attention, but that of Rotwood, who determined to capture it.
Jake's parents took Jake and Haley to the mall where Brad saw Jake on Santa's lap. Overwhelmed with embarrassment, Jake told his family that all he wanted for Christmas was to be free from his "family and their whack traditions". Meanwhile, Trixie is also upset because her dad's plane in Greenland is frozen in ice, and he won't be able to make it home for Christmas.
Spud found out about the sasquatch and told Jake about it. Jake ran outside to find it, but was confronted by Huntsboys 88 and 89 as they comically chased the sasquatch but only succeeded in getting hurt. Jake, Trixie, and Spud followed the sasquatch back to the mall where Jake confronted his parents once again before resuming the chase. Little did they know, 88 and 89 were also at the mall looking for a present for the Huntsman, and 88 could not decide between a stuffed bunny and an Easy Bake Oven until they saw the sasquatch.
Jake chased the sasquatch to where the mayor was lighting the tree, which the baby climbed up. Rotwood followed but lost his balance when the lights turned on. In dragon form, Jake flew up to the tree as Rotwood fell, and 88 and 89 flew by with a Hunts-vehicle, snatching up the baby. Rotwood landed safely on a giant Christmas present box as Jake made ready to go after the Huntsboys, but the sasquatch's family showed up and were very angry. Spud tried to distract them by skating as Jake left, but was unsuccessful. Thinking quickly, Trixie wrapped her white coat into a bundle, saying it was the baby, prompting the group of sasquatches into chasing after her.
Jake quickly caught up to the Huntsboys. Huntsboy 89 captured him in a net, but out of excitement of that success, he lost control of the vehicle. They crashed into a theater where people were performing a Christmas pageant. Jake freed himself from the net, only to be swept up as a part of the pageant as a female Santa dancer, with a Santa skirt and everything, while the Huntsboys left with the baby. After a couple moments Jake got away, flying as fast as he could to catch up, but crashed into Trixie and Spud as 88 and 89 loaded onto a Hunts-copter just as the sasquatch herd showed up. Jake and the herd both tried to attack the copter, but were hit with a stun ray.
Things were then left to Spud. He pulled out a loaf of fruitcake and hurled it at the Hunts-copter, causing it to spin out of control with 88 and 89 holding on for dear life. The baby sasquatch was safely reunited with its family. The baby gave Jake its special rattle, and Jake realized Christmas was not about the parties or the presents. It was about being with family.
Trixie woke up the next morning to find her dad had managed to make it home for the holidays. Trixie was delighted but also confused as to how he got home. He was a bit confused himself, explaining that something came over and melted away all the ice and joked about Santa's reindeer breathing fire. Trixie, knowing who really did it, said to herself, "Thanks, Jakie!"
At Jake's house, he got to place the star on top of their tree. He seemed to be fine with his family's traditions – that is, until his father started listening to their new Christmas record.
Fu then finished the story while drinking eggnog.