The Heeler family is lounging on the floor when Bluey tries to sneak a peek at the presents. Bandit reminds her that Santa only visits children who are nice. Bluey shares with Muffin that Santa arrives via the verandah, not the chimney, which inspires Bingo to suggest a game of Verandah Santa. As they rush to the bedroom, Muffin accidentally steps on Stripe, but apologizes profusely to ensure Santa still brings gifts.
Bandit pretends to tuck the kids into bed, then sneaks off to become Verandah Santa, leaving a gift under each of their pillows. After waking up and finding the gifts, Bingo takes Bluey’s pencil case, prompting Bandit to intervene and have Bingo apologize. However, Bluey refuses to forgive until Bingo and Muffin remind her that Santa rewards nice kids. When Bluey takes her turn as Verandah Santa, she startles Bandit, Bingo, and Muffin with her ninja-style “Ho-ho-ho’s.” After they apologize for spoiling the game, Bluey accepts and gives them presents. Socks joins in, and Bingo decides to make her her reindeer assistant.
As the game continues, Socks accidentally bites Bluey’s hand while being picked up, prompting Bandit to explain that Socks is still learning right from wrong. Bluey, seeking revenge, becomes Santa and leaves gifts for everyone except Socks. Socks runs off upset, and Bluey sulks in the living room. Chilli and Bandit encourage Bluey to apologize to Socks, explaining that being nice isn’t just about getting presents. They take her outside to show her the distraught Socks, and Bluey, feeling guilty, apologizes and is forgiven with a lick on the hand. The episode ends with a pillow fight, as everyone tricks Bandit while he’s acting as Verandah Santa.