The episode opens with Winston, Schmidt and Nick wearing the gifts Jess bought them: roller skates. Then Jess rushes in and tells everyone they need to come with her to the mall because she needs to buy her new boyfriend, Paul, a great Christmas gift. And she has no idea what to get him. On top of that, everyone is planning their Christmas get away, with Nick once again needing to catch a 4:00 a.m. flight.

Schmidt has invited everyone to his company Christmas party where once again,he is going to be playing Santa. Because he’s the only guy in the office.

Following their trip to the mall, where Schmidt tries to convince Winston to get a job at his office, Jess takes everyone for a drive down Candy Cane Lane, a street she is fascinated with because in the evening, the whole block lights up. Jess tells them they have to come back later but Nick tells her there won’t be time because of his flight and how he’s missed it four years in a row and if he misses it this year, his mother’s going to kill him.

Schmidt gifts CeCe a bottle of perfume that he had made especially for her: base notes of cocoa because of her brown-ness, sea salt because it kind of sounds like CeCe and sandalwood, always up to no good.

Paul and Jess exchange gifts. He gives her tickets to Vienna and passes to the Salzburg Music Festival. She gives him an anatomically correct beating heart. Of a 50-year-old non-smoker. Paul says he loves it. Then he says he loves Jess. But Jess doesn’t know what to say. So she thanks him.

At the party, the group runs into CeCe who is wearing the mustache Jess gave her as a present. Meanwhile, Schmidt is “Dirty Santa”, perched on a throne wearing nothing but a hat and velvet red shorts, shirtless.

Jess is still bothered by Paul telling her he loves her and all she could say was “thank you”. She tells this to Nick, as he sees something is bothering her. Nick tells her if she doesn’t have feelings for Paul she needs to tell him. She says, “I can’t do that to someone on Christmas.” But Nick encourages her to tell him.

CeCe and Jess run into each other in the restroom while Nick confronts Paul who is outside. Of course, Nick thinks Jess has already told him how she feels. But she hasn’t. Which takes Paul by surprise as he tells Nick all he and Jess have discussed is getting Nick to the airport on time for his flight.

Jess leaves the bathroom, and CeCe tries the perfume Schmidt gave her, making the realization that it stinks.

Winston is contemplating a job at Schmidt’s office, talking to nobody but a young boy by the name of Elvin who is there with his mother. Winston asks him what his deal is, and Elvin blurts, “Mommy won’t let me sit on Santa’s lap” To which Winston replies, “You have a smart mommy.”

Schmidt is approached by his woman boss Kim who asks him what he’s doing, as he’s trying to get up.

Schmidt: I have a bad case of Santa’s lap. The entire marketing department is wearing wool. It’s not good down there.

His boss tells him to get back to work soon and slaps his Santa hat.

CeCe approaches him and asks if he likes to be treated like that and he admits that he doesn’t. She tells him he doesn’t deserve to be treated like that.

Nick and Paul are still talking and then Jess comes out. But Nick is still out there and cannot get back inside because the door is locked. So, he’s forced to listen in on Jess and Paul’s conversation. And his mother calls to make sure he’s coming.

Nick: I can’t talk right now. I’m in a real weird situation. No, Ma, I’m not high—I’m done with that phase. I promise you I won’t miss my flight.

Meanwhile, Schmidt confronts his boss. He tells her he’s not going to be Sexy Santa anymore. Then he tells him he killed Santa, just as Elvin, the kid that Winston was talking to, walks in. And screams at the fact that Schmidt has killed Santa.

Next, we see Winston talking to Nick’s mother on the phone, assuring her they will get Nick to the airport on time. And Elvin’s mother is looking for him because he’s run off after hearing Santa’s dead.

As Paul and Jess officially break up, Winston opens the door to the outside, in search of Elvin, and finally freeing Nick, who runs off. Winston ends up finding Elvin hiding in an inflatable igloo outside. Elvin’s mother gives him her business card and asks if he ever wants to babysit Elvin, he’s all his. Elvin is under the impression Winston’s name is Lebron. Mrs. Miller calls Winston again and Winston tells her they are on their way to the airport.

The five of them are now in the car. Nick is driving. Jess is in the passenger seat, feeling dejected from her breakup with Paul. Nick takes a side turn and the next thing they know, they are on Candy Cane Lane. But all the lights are off because it’s late.

Nick starts banging on doors, yelling to everyone to turn on their lights. The others join in yelling “Turn on your lights!”. As the lights sporadically come on, “I’ll Be Home for Christmas” by She and Him plays in the background. Because what better way for Jess to enjoy her lights than to have her singing while doing so. And Nick’s mother calls him again. Unfortunately, he is going to miss his flight. And he passes his phone to Winston.