When Peggy's successful brother, Tom, drops in for Christmas, Mike immediately oozes with jealousy. Thus begins Mike's one-sided competition with Tom, using his kids as pawns to help. After Tom gives the Clearys an extravagant Christmas gift, pride prevents Mike from taking it – putting him at odds with the rest of the family. Meanwhile, Timmy mistakenly receives $100 from his great-aunt for Christmas and contemplates whether he should do "the right thing" or keep it. Elsewhere, Eddie forgets to get Wendi a Christmas present and panic sets in.

Against Peggy's wishes, Frank secretly helps design a set for a musical in which Timmy is performing. Feeling jealous of all the positive attention Frank is getting for his work, Timmy devises a plan which forces Frank to admit his involvement on set, but Timmy's scheming backfires. Meanwhile, Mike grows increasingly concerned that Joey is heading down a shady moral path with all his wheeling and dealing, and decides to teach him a lesson.