It's the holiday season and Abed joins his pals in the cafeteria to discuss everyone's vacation plans. Annie's going to cram for a relaxation class she's taking the following semester. Troy's looking forward to playing video games that allow him to "fake murder" people. Abed reminds everyone that this must be an important Christmas; why else would he and his friends be stop-motion animated? In order to take advantage of his new animated self, Abed bursts into a joyful song and dance. That is, until security guards taser him! Abed's "delusions" land him in Professor Duncan's office, where Abed insists that they're all animated. Abed realizes he must discover the meaning of Christmas in order to explain his strange transformation.
Abed asks a lonely snowman about the meaning of Christmas, but unfortunately, he doesn't know the answer either. Britta texts Abed to tell him that the meaning of Christmas is in the study room. But once Abed arrives, he walks straight into an intervention led by Professor Duncan. Abed initially resists, but soon Duncan - who Abed easily transforms into a wizard - forces everyone to join in a "Christmas-nosis" session. Instead of convincing Abed that he's delusional, the "Christmas-nosis" session transports everyone to Planet Abed, a winter wonderland of Christmas fun. Jeff becomes "Jeff in the Box" while Troy turns into "Troy Soldier." Britta becomes "Britta-bot" while Pierce turns into "Teddy Pierce." Annie becomes "Baller-Annie" and Shirley turns into "Baby Doll Shirley." With his newly transformed pals, Abed decides to head to the North Pole in order to find the meaning of Christmas.
Abed warns his friends about the difficult journey ahead. Getting to the North Pole won't be easy, but as long as they stay between the gumdrops they should be fine. Shirley, however, isn't pleased that Abed turned her into a baby. When she insults Abed's "make-believe therapy wonderland," Duncan freezes her in a block of ice and has a Christmas pterodactyl get rid of her. The professor wants to study - and profit from - Abed's condition and doesn't want Abed to realize this is all a Christmas delusion. Moments after Shirley's abrupt exit, evil humbugs attack Jeff. Humbugs are attracted to sarcasm and sadly, Jeff can't stop himself from insulting everything. The humbugs devour Jeff, leaving only his skeleton behind.
With Shirley and Jeff out of the picture, the crew continues on their journey. Despite being in a winter wonderland, Britta constantly complains and won't sing any Christmas songs. Soon the group reaches The Cave of Frozen Memories. Ever the exploiter, Duncan urges Abed to reflect on his childhood. But soon it's Duncan who's dredging up deep, dark childhood memories! He rushes out, clearly traumatized. Abed, on the other hand, is as motivated as ever to get the North Pole. He dismisses a tearful Britta for tricking him into therapy. Britta argues that she was just trying to save Abed from being kicked out of school. Sadly her cries fall on deaf ears. Abed leaves and the cave explodes, burying Britta alive.
Joining his friends on a train headed for the North Pole, Abed begins to reminisce about past Christmases. He loves to spend every December 9th celebrating with his Polish mother, who incidentally thinks the 9th is Christmas day. Troy tells Abed that today's December 9th, but Abed dismisses him. Suddenly Duncan reappears and tries to break through Abed's fantasy world. Duncan asserts that they're all in the library at school and nobody is animated. Abed refuses to give up on his delusions and rushes onto the roof of the train. With Annie's help, Abed runs to the front of the train and disconnects the other railroad cars. A determined Abed continues on his journey with only Pierce by his side.
Abed and Pierce enter Santa's Workshop, a dark shed full of a variety of toys. Abed finds a wrapped gift in the center of the room; could it be the meaning of Christmas? Abed unwraps the present and finds the first season of "Lost." "That's the meaning of Christmas?" Pierce asks. Abed's face falls. It's clearly just a metaphor representing lack of payoff. Abed's back to square one. Duncan reappears and says that Abed's animated fantasies are really just a way of avoiding a harsh reality. In particular, Abed's trying to forget a Christmas card from his mother he only read a few hours ago. The card stated that Abed's mother would rather spend Christmas with her other family. Ouch!
Overcome with emotion, Abed becomes trapped in a block of ice. Seeing this, Pierce insults the Duncan for using Abed in order to further his own career. Abed might make a great case study for a psychology journal, but he's also a human being with real feelings, and right now he's trapped in an ice cube. Duncan argues that he's only exposing Christmas for what it is: an overrated, meaningless holiday. Suddenly Abed's pals reappear to save they day! They're carrying guns and they've come to save Abed - and the meaning of Christmas! Maybe Christmas is a delusion, they argue, but when everyone comes together and shares in the insanity, the magic of Christmas becomes real!
The gang decides to sing a song in order to save their frozen pal. Even Britta joins in the caroling and merrymaking! Before long, the ice cube melts and Abed is free once more! But Annie's still feeling a little vengeful, so she sends a Christmas pterodactyl to kidnap Duncan, which explodes as it flies away. Moments after the explosion, Abed holds the sad Christmas card from his mother and finally explains the meaning of Christmas to his friends. The meaning of Christmas is the idea that Christmas has meaning. To Abed, Christmas used to mean spending Christmas with his mother, but now it means spending Christmas with his friends. Safely back at school, Troy and Abed decide to embrace their new animated selves by switching heads. What better way to celebrate Christmas!