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The episode begins in the Kramden apartment showing Alice wrapping Ralph's christmas gift. After she finishes, she walks around the apartment looking for a place to hide it. Alice decides that under the icebox is best. Trixie enters and complains that Norton gave her an orange juice squeezer. Alice gives Trixie some oranges so she can try out her gift, then Trixie leaves. Alice goes into the bedroom, and Ralph enters the apartment carrying Alice's gift. He too looks for a hiding place, and decides on the same place Alice did - under the icebox. Alice emerges from the bedroom, catching Ralph in the act of hiding her gift. Ralph confesses that he was hiding a gift. Amused, Alice laughs and says that she hid his present in the same place. Ralph goes into the bedroom and Alice says she is going to Trixie's place. She slams the door shut and hides. Ralph runs to the icebox and digs out his present. As Ralph stands up, Alice is right there to bust him. Alice hides Ralph's present in the bedroom. Ralph is upset because Alice does not think that she can trust him. Alice tells ralph where the present is, and then takes some onions to Trixie. Ralph immediately goes to get his present, and a snapping sound is heard. Ralph emerges from the bedroom with a mousetrap on his hand! Upset, he does places the mouse trap under the icebox by Alice's gift. Norton enters the apartment, and the two pals exchange gifts. Norton asks what Ralph got for Alice. Ralph reaches under the icebox to get Alice's gift, and again gets his hand snapped in the mousetrap. He shows Norton a hairpin box made from 2000 matchsticks. Norton persuades Ralph to give Alice the gift tonight. As Ralph is calling Alice from the bedroom, a friend stops by to give Alice a gift. Since the friend is leaving town, they two decide to open the presents right there. Alice's gift is the same hairpin box that Ralph bought her.

Scene 2 is in the Kramden apartment. Ralph is sitting dejectedly at the kitchen table. Norton is literlly throwing icicles on Ralph's christmas tree. Ralph confesses to Norton that he had saved $22 to buy Alice a nice gift, but he spent it on a bowling ball for himself. There is a knock on the door, and Uncle Leo enters the apartment. Ralph and Leo exchange gifts. Ralph opens theirs, and finds a $25 gift certificate to Wallace's Department Store. Ralph gets that idea to use the certificate to buy Alice a gift, then replace the gift certificate with another one later on. Alice returns and Ralph ends up giving her the gift certificate. Depressed, Ralph decides to sell the bowling ball to get buy Alice's gift.

Scene 3 is again in the Kramden apartment. Alice is making breakfast and calls Ralph from the bedroom. The two exchange gifts. Ralph's present is a bowling ball bag. Alice tells him to get his bowling ball so they can see if the bag is the right size. Ralph then admits that he sold his bowling ball to buy her christmas gift.