All Howard Cunningham wants for Christmas Eve is to have a nice quiet evening at home with just the family: himself, his wife Marion, daughter Joanie, son Richie and even his elusive other son Chuck.

Despite the fact Howard wants a nice quiet Christmas Eve, the mechanical Santa in the front yard is malfunctioning and is randomly beating up Richie. Much to Chuck’s delight.

Down at Arnold’s Fonzie comes in with gifts for some of the waitresses and Ralph Malph, Potsie and Richie. Everyone just loves their new necklaces that declare “You’re The Ginchiest”. The heartfelt gift from The Fonz prompts Potsie to invite Fonzie to his house for Christmas dinner. But Fonzie says he has plans. When questioned what his plans are The Fonz says he’s going to his cousin’s up in Waukesha. As the guys listen, Fonz continues: “I’m not much for family but I figure once a year I can take it. I’m leaving tonight on the 4 o’clock bus.”

As Richie and Howard are about to leave Howard’s hardware store, they have car trouble. Richie calls Fonzie who just so happens to still be at his garage. Richie tells his father that Fonz says he can fix it if they can push it over there.

Fonzie fixes the car and refuses payment from Howard. Richie points out to Fonzie that it’s after four and he’s missed his bus. Fonzie says “so what, I’ll catch the one at five:. Richie suggests they drive Fonzie to Waukesha. Fonz starts getting defensive and tells Richie and Howard to leave.

The two pull out of the garage but before they leave Richie tells Howard he has to give Fonzie his present. When he goes to open the door, he witnesses Fonzie sitting alone, getting ready to have a meal. He doesn’t look like someone getting ready to go to Waukesha. Richie knows something is up.

Back at the Cunningham’s, the family is busy decorating the tree as Howard recites everything they’re going to do once the tree is trimmed: make hot cider, pop popcorn, everything they used to do when they were little. Richie meanwhile is not feeling festive and Howard notices, saying to him “what’s the matter with you, you’ve been moping around since we got home”. Richie confides to Howard that he doesn’t think Fonzie went to Waukesha. Marion pipes in and asks Richie if he thinks Fonzie is all alone on Christmas Eve. Richie admits to seeing him eating ravioli out of a can and states “Now what kind of a way is that to spend Christmas Eve?” Everyone gives Howard the evil eye as he tries to brush the fact aside that Fonzie is all alone. Richie suggests they go over to Fonzie’s and finally convinces Howard to go.

They go to Fonzie’s and he comes out with a  suitcase insinuating he’s on his way to the bus station. Richie and Howard ask to talk to him. Richie asks Fonzie if he’d like to spend Christmas Eve with them. Howard uses the Santa in the front yard who is malfunctioning as an excuse to get Fonzie to their house because he needs to fix it.

In the end Fonzie fixes Santa but still insists he needs to get going. He also manages to fix the Christmas lights on their tree.

Marion asks “What would we do without you, Fonzie?”

And Richie adds, “Our car would be stuck in the snow, our tree would be out and our Santa would be mugging the neighbors.”

Howard points out that it’s three minutes past nine and Fonzie has missed his last bus and Marion insists he spend the night. As they’re roasting marshmallows by the fire, Fonzie turns to Richie and says “Thanks for having all your freckles in the right place” because he knows Richie is the one who figured out the truth about Waukesha. And he’s truly grateful for his friendship.