As Chris Carver (portrayed by Eddie Murphy) embarked on his journey for creative expression, he couldn’t shake off the envy he felt towards his neighbor Bruce (Ken Marino), who seemed to effortlessly triumph in the local Christmas decoration competition. His life was about to take a wild turn, unbeknownst to him. After an unexpected layoff from his corporate job, Chris found himself in dire straits, with the enticing potential of winning a $100,000 grand prize from Prism Cable serving as a much-needed beacon of hope.

As the festive season drew near, Chris, accompanied by his youngest daughter Holly (Madison Thomas), stumbled upon a mysterious shop named “Kringle’s.” Inside, they discovered an enchanting array of decorations and figurines. Chris was particularly captivated by a stunning tree-shaped zoetrope that featured the beloved “Twelve Days of Christmas.” Little did he know, this seemingly harmless acquisition would set off a chain of extraordinary events.

The following day, the Carver family’s swimming pool transformed into a breathtaking spectacle with seven swans gliding serenely across its surface. Initially, Chris suspected Bruce might be the mastermind behind this uncanny phenomenon. However, things escalated quickly as his wife Carol (Tracee Ellis Ross) found herself surprisingly attacked at work by six geese laying eggs, in addition to three French hens dressed in festive attire, while their pool continued to host an increasingly fantastical collection of characters.

Confused by the Christmas chaos surrounding them, the Carvers discovered a hidden Christmas village within “Kringle’s.” Here, they encountered a group of living glass figurines led by Pip (Nick Offerman), Cordelia (Robin Thede), Gary (Chris Redd), and a team of carolers. This group revealed that Pepper (Jillian Bell), the shopkeeper, was an evil Christmas elf, adept at manipulating unsuspecting customers into making Faustian deals.

As Christmas Eve loomed closer, Chris faced a formidable challenge: retrieving five golden rings from images that had inexplicably come to life. The stakes were high—failure would render both him and his family as mere figurines. Undeterred, Chris and Holly set off to reclaim the initial two rings from the turtledoves and French hens while also rescuing the living figurines, bringing them back to the clock tower.

When chaos erupted during Joy’s (Genneya Walton) track meet—complete with eight maids milking and ten lords leaping into the disarray—Chris struggled to find the balance between Christmas magic and his family’s needs. While he managed to recover the third and fourth rings, Joy vented her frustration at Chris, accusing him of selfishness.

As the Carver family’s gathering reached a pivotal moment, Chris made the bold choice to unveil the bizarre circumstances to his loved ones, urging them to unite and take action. Their sleuthing efforts led to a significant discovery: Pepper had inadvertently located the fifth ring. They devised a plan to ensnare her at the competition’s climax, but just as they thought they had the upper hand, Prism Cable’s breaking news revealed that the $100,000 prize was actually redeemable in taco coupons, leading to initial excitement turning into disappointment.

In a dramatic turn, Santa Claus (David Alan Grier) made a grand entrance, whisking Pepper away to the North Pole while warning Chris that he needed more than just five golden rings. It became clear that the Carvers faced an overwhelming task—collecting 40 rings, corresponding to the eight repetitions of “five golden rings” in “The Twelve Days of Christmas.” Rallying together, with Santa’s unexpected assistance, the family jumped into action.

However, Pepper’s mischief was far from over. She unleashed chaos upon the neighborhood with her remaining decorations, forcing the Carvers to get inventive in their quest for the elusive rings. Within the clock tower, she toyed with time itself, even turning Chris into a figurine. As they raced against the clock to collect the necessary rings, they fell just short at 38.

In an unexpected twist, Santa revealed that Chris and Carol’s (Tracee Ellis Ross) wedding rings were made of gold, bringing their total to 40, which restored Chris to his human form. In a heartwarming moment, Holly’s Christmas wish was granted as she reversed the spell affecting the figurines. As the night continued, Pepper faced her reckoning, being sent to the North Pole alongside the other figures, except for Pip.

On Christmas morning, the Carver family gathered to enjoy their hard-earned tacos, reconciled with Bruce and his family. Pip arrived solo, seeking solace from spending the holiday alone, only to be welcomed into the warmth of the Carver family.

One year later, a mid-credits scene reveals Pepper’s evolution as she’s transformed into a glass figurine by Santa, her good behavior paving the way for her reindeer poop-scooping privileges to be restored. Meanwhile, Chris took the reins of Pepper’s store, transforming it into “Chris Kringle’s,” a testament to his journey and newfound entrepreneurial spirit.