Gator returns to the island for Christmas. Thomas discovers Gator has returned, and excitedly tells Percy about it. Percy and Gator want to see each other again, but Percy keeps missing him as Gator mistakes where his delivery of rock salt is meant to go.

Duncan is grumbling at Christmas time and the engines begin to lose their Christmas spirit. In an attempt to fix the issue, Mr. Percival says that Duncan can be first in line for a new coat of paint if he stays cheery all day. Duncan tries to do just that, but he finds it more difficult than he thought.