'Tis the night before Christmas, and a strange vehicle appears in the sky above Vermont. Is it Santa's sleigh drawn by reindeer? No, it's five aliens from the planet Fixipuddle, caught in Earth's gravity and plummeting to the ground.

The aliens tune into a broadcast movie, and see Santa Claus forcing enslaved elves to make spies for him, and then sneaking into houses in the middle of the night to plant his spies and steal food and drink. The Fixipuddlians decide to free Earth from this evil tyrant, and set out across the snow, disguised as elves.

Meanwhile, stockings are being hung up, Christmas parties are in full swing and, as usual, the rival Tattletales and Copycats clubs are trying to outdo each other in everything. However, when the town's beloved Mayor Grass disappears, for once the rival clubs team up to save him.