During a starry night, in a house with a decorated Christmas tree, Ash says the group should go to bed soon because Santa Claus is coming. At the same time, Pikachu entertains Togepi by making funny faces. After Ash hangs a Christmas stocking, he lies in the bed, telling Pikachu to go to sleep, and Misty tells the same thing to Togepi. They both go to their Trainers' beds and cover themselves with the blankets. Brock wishes Misty and Ash good night, and they all fall asleep.
Next to the fireplace where Ash's bag is, Chikorita comes out of it, sees Pikachu lying next to Ash, and uses her vines to take him out of the bed. Then, she jumps in the bed and covers with the blanket. Togepi wakes up and Bulbasaur, Heracross, Vulpix, Poliwag, Psyduck and Squirtle come out of their balls. At their sound, Pikachu awakens, and Togepi and Chikorita jump out of the bed and run towards them. Next, all Pokémon are looking through the window and see the decorated Christmas Tree. Chikorita looks up the sky and sees a laser-like red light. The window accidentally opens and they fall down in the snow.
They head towards the place where the red light has been going over a forest trail. They arrive at a place where they see Santa Claus and his Stantler. He tells them that Stantler has fever and only a certain Berry can cure it. All Pokémon volunteer to search for the Berry. They start searching when snow falls onto Pikachu's head and he gets an idea. He proceeds to explain it to the rest while the scene moves forward to the Christmas Tree. Chikorita uses Razor Leaf to bring down the star on top of the tree which falls on Pikachu's head. He uses electricity to power it up.
They proceed to search again having the star's light to help them see in the dark. Next they gather together with no results in finding the Berry. Vulpix comes and points to the top of the mountain meaning the Berry is there. Pikachu starts climbing up and a powerful wind blows the star from his head. He resists the wind and continues climbing until he finally manages to get there. He takes some Berries then the small snow-covered rock under him breaks, making him fall. Bulbasaur and Chikorita use their vines to stop him from falling and bring him back to safe ground. They hurry back to Santa Claus and give Stantler the Berries. Stantler cures and Santa thanks them. Then Stantler perks up and proceeds off into the sky as the Pokémon are watching them.
In the morning, Ash, Misty, Brock and the Pokémon enjoy their presents, while the Christmas tree is revealed to have the same star on the top.