During a holiday ice skating show starring guest voice Elvis Stojko, Homer jumps into a chaotic brawl involving the other ice skaters. In order to escape the chaos, Marge decides to take the family holiday shopping. Gil, dressed as Santa Claus, unknowingly gives Lisa a sold-out Malibu Stacy doll that belongs to his boss' daughter. When Gil loses his job, the Simpsons invite him over for Christmas dinner, which becomes a huge mistake as Gil moves in uninvited and mooches off the Simpsons. Out of guilt, Marge continually allows Gil to prolong his stay, but when her patience wears thin, she's forced to overcome her fear and finally say 'no'. Blackboard: 'Frankincense is not a monster'.

After the Simpsons' car breaks down, the family tells each other tales of revenge gone wrong. Marge offers a cautionary tale of revenge from 19th-century France, where Homer is charged with treason; Lisa tells of a nerd revenge at Springfield Elementary involving Milhouse leading the nerds to overthrow the bullies; and Bart's story follows the great crime-fighter.