It's nearly Christmas and Duggee is wrapping presents to go under the tree. He asks the Squirrels if they want to help decorate the clubhouse for Christmas. Of course they do! But they don't just want to decorate the clubhouse; they want to decorate everything - including Duggee and Enid the cat! Out comes the tinsel, baubles and chains, then some more tinsel, and lights to go everywhere. What a lovely Christmassy clubhouse! To top it off the Squirrels have got Christmas presents for everyone - but where has Enid gone?

Happy finds a cake lying around in the field and decides to eat it. But whose cake is it?