Little Richie's decision to bring a homeless man home for Christmas lands him in serious trouble with Carl and upsets his family. However, Ben has a lot of lessons that he teaches them about the meaning of the season. As time wore on, the family start appreciating his lessons about Christmas.
Meanwhile, Laura is distraught after Eddie accidentally tosses her cherished childhood doll, Emily, to the dump. She tells him there was a reason why she put her next to her bed, not in the box and blames him for ruining her Christmas. She kept refusing to talk to him until he finds her. Immediately, Steve finds out how much she's distraught and heartbroken over losing Emily, that he sets Eddie straight for his lame-brained decision in tossing her doll out as a result. Urkel told him that had he not tossed Emily out, she would've looked forward to Chirstmas. Then, he head down to the landfills to find her and make Laura happy again as his Christmas gift to her, using a metal detector.
At the house, Ben reveals to Carl that he was really Santa Claus, disguised as a homeless man and explains why he did give him and his family the lessons. He wanted to find a family who understood the true meaning of Christmas and found sucess with The Winslows. He apologizes to him for not getting him the gift that he wanted.
At the landfills, Steve teams up with a friendly golden retriever named Howard, and they search high and low for Emily, Laura's cherished childhood rag doll. Urkel gets distraced by a nudie magazine, but Howard barks at him as a reminder to find the doll. Together it took 16 hours to find Emily, but they managed to do so.
On Christmas day, Harriette and the rest of the family are happily opening presents. However, Laura still feels distraught and heartsick over the loss of her doll. Urkel comes over to the Winslow house and he gives Emily back to her as her Christmas gift. He tells her that he got the doll because he loves her and would do anything for her. Laura's real happy that he found her doll and thanks him for saving her Christmas by hugging him. Carl finally gets the gift that he wanted when he was a boy from Santa. Then the Winslows extend their Holiday cheer to Steve and Howard.