Goofy and Max are mailing a letter to Santa Claus. However, as soon as they get home, their neighbour Pete tells Max that Santa does not exist, saying it is impossible that he cannot fly around the world in one night. Things get worse when Goofy poses as Santa for some kids and Max finds out that he tricked him. Goofy is determined to prove to Max that Santa does exist and stays up all Christmas Eve to keep an eye out for him while Max, still bitter, just wants to move on. After mistaking a Beagle Boy (who was robbing Pete's house) for Santa, Goofy eventually gives up hope of Santa coming. Max then does everything that Goofy did, to try and make him happy, including posing as (a very small) Santa himself. In the end, the real Santa actually comes and gives Max the gift he had asked for earlier (as well as burying Pete's house next door, in snow). When Max asks Goofy if Santa forgot his present, Goofy answers that every year he asks for the same thing - Max's happiness.