Getting the house cleaned for Christmas, the girls ask to stay up to meet Santa when he comes. Will Phil’s plan to dress up be believable? Alice has a gripe about Phil’s lyrics for Jingle Bells, and runs out to phone Don Wilson about playing Santa. Frankie arrives with a gift for Phil, but scoffs at hiring a Santa, just wait for the real thing to show up. Though Willie drops the ball by bringing home a 2 foot tall, shocking pink Christmas tree, he volunteers to play Santa.
Alice sings, Santa Claus is Coming to Town. At Julius store, Phil buys the right Christmas tree. Later, the tree is trimmed, but there’s no sign of the substitute Santa. Andy Divine shows up to play the role, but will the girls believe he’s the real thing? Julius pops in, and isn’t fooled. The girls are polite, but know who’s in the suit.
Phil tells the poem, Twas the Night Before Christmas that fades into an appearance by the real Santa.
In epilog, Phil tells about his successful campaign to help make Christmas merry for needy children.