When the driver of a noisy truck tells SpongeBob to expect a delivery of Princess Napkins the next day, Sponge Bob misunderstands and soon all of Bikini Bottom is gathered to meet the princess.
SpongeBob SquarePants and the residents of Bikini Bottom prepare for the snail race, but SpongeBob may have pushed his snail too hard during training and ruined his chances of winning.
Mr. Krabs comes up with a holiday scheme to sell more Krabby Patties, making himself Krabby Klaws and SpongeBob his head elf in charge of holiday cheer, but Mr. Krabs' arrogance gets him in trouble with both SpongeBob and Santa Claus himself.