This episode takes place in the future, in which a robotic snowman named Sludgy is telling children the story of the most horrible Christmas ever. It all started when Zim, Gir and Minimoose were on the streets trying to make money; he notices that fat men in red coats and white beards were making a lot of money. He captures one and he discovers the story of Santa Claus, in which he is amazed over how much power Santa has over the humans. Zim decides to create a giant Santa suit that he can use in order to pretend to be Santa, in order to have more power over the humans and become their ruler,so zim collects all info on santa and creates his suite, though Dib figures out Zim's scheme and heads out to stop him in order to not only save Christmas, but to save the entire human race as well.