In a small Moustache Shop in England, resides Ebenezer Blackadder (Rowan Atkinson), and his assistant, Mr Baldrick (Tony Robinson). Ebenezer is one of the nicest men there ever was, generous and giving to a fault (so generous that the majority of his profits are given away to charities).
On Christmas Eve, Ebenezer is visited by the Spirit of Christmas (Robbie Coltrane), who just happens to have accidentally stopped by Blackadder's place by mistake. Even so, Ebenezer offers him some respite from his busy evening of helping miser's to change their ways. The Spirit tells that Ebenezer is ok, but in his past, there are other Blackadders who are quite miserly. Curious, Ebenezer asks to know more, and the Spirit goes into several flashbacks.
The first vision shows how Lord Blackadder managed to con his way into great fortune and entitlement by tricking Queen Elizabeth (Miranda Richardson) into executing Lord Melchett (Stephen Fry).
The second vision shows Edmund Blackadder tricking Prince Regent (Hugh Laurie) into giving up his valuable worldly goods to the poor.
These visions intrigue Ebenezer, and he also wishes to see the future. However, the Spirit shows him two futures: if he becomes bad, his future descendant will become ruler of the Universe. If he stays good, he'll become the slave to the future descendant of Mr Baldrick.
The Spirit of Christmas then attempts to leave, hoping that none of what Ebenezer has seen will cause him to stray from the side of good. Ebenezer claims he won't, and the Spirit departs.
The next day however, it becomes apparent that Ebenezer has lied. Every single person he encountered the previous day shows up for hand-outs or to take advantage of him, but Ebenezer is crass, rude, and ill-tempered towards almost every single one of them, including Baldrick.
Two strangers soon come to call, but Ebenezer tells Baldrick to have them go away. When they refuse to do so, he insults the two strangers.
Tucking into a dinner-for-one (though Ebenezer does give Baldrick the wishbone from one of the turkeys he's having), Ebenezer remarks that the two people looked a bit like Queen Victoria (Miriam Margolyes) and her Prince Consort, Albert (Jim Broadbent). Baldrick explains that it was the real Queen and Prince, who were going to give Ebenezer 50,000 pounds and the title of Baron Blackadder.
Ebenezer scoffs at this, saying that if it really was the Queen, she would have presented them with her royal seal...which Baldrick pulls out of his coat (the Queen had given it to him at the door when he answered it).