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Sandy tells SpongeBob about Christmas traditions, and he then relays the event to everybody in Bikini Bottom. The town becomes convinced that Santa will come and grant their wishes. SpongeBob and Patrick then go to decorate their end of Bikini Bottom with festive decorations. On Christmas Eve, Bikini Bottom gathers around Squidward’s fallen “Coral Tree” and sings Christmas Carols in anticipation of Santa. When Santa fails to come, SpongeBob becomes riddled with sorrow, and Squidward revels in remorse. He makes up for mocking SpongeBob’s belief in Santa by giving away everything he owns, posing as Santa. The real Santa appears and Squidward questions his sanity. There are two gags in this episode: one being Patrick’s reference to Santa as “like a genie!”, the other being Patrick ripping his paper.

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