Daolon Wong has captured Santa Claus, who possess good chi in abundance, on Christmas Eve. Jackie, Jade, Uncle prepare for Christmas, with Uncle and Capt. Black trying to convince Jade that Santa is real. An Elf comes to Uncle for help in locating the kidnapped Santa. El Toro and Viper are called into action to help. Tohru, Jade and Paco substitue for Santa in making deliverys that night while Jackie, El Toro and Viper free Santa. Jackie and company go up against Daolon and his evil animated snowmen. Tohru makes a ’nick-of-time’ rescue in the sleigh, and is humbled to be sitting beside the Jolly Ol’ Elf himself. It’s a Merrry Christmas for our heros!