Mr. Peepers and his wife Nancy have their first marital spat. Robinson invites his beloved Aunt Lil home to dinner without warning Nancy; then Aunt Lil invites a friend of hers, to Nancy's increased consternation.

Mr. Peepers agrees to play Santa Claus to his neighbors' children; Harvey Weskit has a similar plan in mind, as do other parents in the neighborhood. The problem arises when there is only one Santa Claus suit in town.