When Cleveland and Rallo both have to come home early after getting scared while at their respective slumber parties, Donna makes them spend the night in a haunted house to prove how brave they both are. Elsewhere, Cleveland's new friend is on a murderous revenge rampage after being rejected by Cleveland and his other friends. Meanwhile, Roberta is stuck in a love triangle between a vampire and a werewolf.
To help pass time while posing in a holiday nativity scene, Cleveland tells his family his own version of one of his favorite holiday stories, "Die Hard." In Cleveland's version, when Waterman Cable Company is taken hostage on Christmas Eve by a group of terrorists, including Tim the Bear, Lester, Federline and Kendra, a barefoot Cleveland - wearing a tank-top much like the one Bruce Willis wore in the movie - must endure window-shattering shoot-outs and fist fights with his friends to save his wig-wearing wife, Donna, in a parody of the greatest holiday-themed ...
Donna dumps Cleveland as her partner in a dance competition in favor of Cleveland Jr., so Cleveland vows revenge. But things become awkward when Cleveland Jr. wants to bring their partnership to another level.
Cleveland temporarily loses his hearing after a hunting accident but soon discovers a new way to gain Donna's affection, while Roberta decides to run for student body president against incumbent Cleveland Jr..
Cleveland tries to win tickets to a Justin Bieber concert and gets labeled "The Whitest Black Man in America." He later discovers that his "whiteness" is the result of being partly raised by a white nanny.
Cleveland Jr. pretends to be Christian to get a beautiful girl, but soon discovers that he has an equally deceptive competitor. Meanwhile, Cleveland and Donna lie to a disabled veteran to spare his feelings.