Busy Christmas shoppers pack the sidewalks, but Jerry mopes in his hotel room. When is Jerry going to get a little Christmas spirit, grow up, and stop acting like a kid? To shift gears, the guys are visited by Sheldon Leonard who brags about his popularity in politics. Dean sings, Santa Claus is Coming to Town.
Jerry manages to get involved with a girl, played by Florence McMichaels, and he squeezes in jokes about dating. Both Dean and Jerry try to impress the mom of Jerry’s new girlfriend with their worldly ways. Dean sings, I’m Dreaming of a White Christmas.
What would make the Christmas spirit real for Jerry? Sidney helps creat a drama about King Arthur for Jerry to fantasize about. Finally Jerry and Dean make it to the big costume Christmas ball. Dean closes with a final chorus of Silent Night.