On 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 his 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 a good night, and they all fall asleep.
Next to the fireplace where Ash's bag is, Chikorita pops out of her Poké Ball. She spots Pikachu lying next to Ash and is instantly jealous, so she uses her vines to take him out of the bed. Then, she jumps in the bed and covers herself with the blanket. Togepi wakes up and Bulbasaur, Heracross, Vulpix, Poliwag, Psyduck and Squirtle come out of their Balls. The commotion wakes up Pikachu while Togepi and Chikorita emerge from the covers and rush to join the others. Next, all Pokémon are looking through the window and see the decorated Christmas Tree. Chikorita looks up at the sky and sees several shooting stars before a dash of red light streams across the night sky. Everyone Is curious and press their faces against the glass to have a closer look, which causes the window to accidentally open and they fall out into the snow.
The Pokémon instantly bolt into the pine forest and towards the red light, ignoring Pikachu’s pleas. They soon arrive at a clearing where they see Santa Claus and his Stantler. He tells them that he still has to deliver many presents, but his Stantler has come down with a fever and only a certain Berry can cure it. All the Pokémon volunteer to search for the berries. They start searching through the snow, but are getting nowhere. Pikachu suddenly gets an idea after snow falls onto his head, and he proceeds to explain it to the others. They turn their attention to the Christmas Tree, where Chikorita uses Razor Leaf to bring down the star on top of the Tree. The star lands onto Pikachu's head. He uses his electricity to power it up, and the light help them see in the dark as they search for the berries. Despite their enthusiasm the search is yielding no results so far.
Vulpix suddenly perks up and points to a berry bush growing from a steep cliff, and the others spot the berries as well. Togepi decides to make the climb, though Pikachu pulls it to safety and decides to scale the cliff himself. Pikachu starts climbing up when a powerful wind blows the star off his head. Though he resists the wind and continues climbing until he finally manages to get there. He picks some Berries then the small snow-covered rock ledge 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 is soon feeling better and Santa thanks the Pokémon for their help. Santa and his Stantler fly off in their sleigh to continue their round the world present deliveries while Pikachu and the rest wave to him.
The next morning, Ash, Misty, Brock and the Pokémon enjoy their presents, while the Christmas Tree is revealed to have the same star on the top.