Plot

The gang grumbles Christmas isn't real fun any more, like when they were little kids, except Kelso who looks forward to the traditional X-mas children's specials, but Jackie won't let him watch. Kitty gets them to volunteer for pastor Dave's church pageant, with Eric as director, who has an all too hard time stopping everyone for modernizing their parts most un-biblically. When Dave tries to take over directing and the lead, he is irreverently tied up, enough for Leo to give the sacrilegers heaps. Meanwhile Red is so angry at Bob's seasonal 'noise' that he hides his neighbors' decorations. Yet, in the end...—KGF Vissers

The gang grumbles Christmas isn't real fun anymore, like when they were little kids, except Kelso who looks forward to the traditional X-mas children's specials (Rudolph, Santa Claus is coming to town, The Little drummer boy) but Jackie won't let him watch.

Kitty gets them to volunteer for pastor Dave's church pageant, with Eric as director. Dave is not happy with Eric directing the show, but the church board insisted as they felt Dave doesn't connect with the younger generation anymore.

Eric has an all too hard time stopping everyone for modernizing their parts most unlike the bible. Jackie is the virgin Mary who rides a white unicorn. Hyde wants to play baby in the manger, who just has to lie there and do nothing. Kelso wants to play Joseph the Carpenter as Spaceman. Kelso argues that God lives in space and hence is likely to have a Spaceman as parents. Donna wants to play a "wise woman" instead of a wise man. While Fez is angry that the foreign guy has to play the shepherd. Fez wants to play the lifeguard who gets to herd all the ladies into the pool. In Eric's imagination, the pageant would take place on a beach set. Jesus would be a baby girl. Virgin Mary Jackie would roller skate in. Fez would play the lifeguard. Hyde and Donna would roll in as the wise man and woman on a Harley Davidson with a gift of Frankincense, Myrrh, Led Zeppelin IV. Kelso is the Spaceman.

Dave fires Eric when he joins the gang for a pot session during rehearsals. Dave tries to take over directing and the lead. Soon, Dave is tied to his chair by the gang with electrical wires. This is enough for Leo to give heaps of crap to the rest of the gang. Leo points out that Eric is the only one of the gangs to have any morals and now the gang has ruined Christmas. The gang go to find Eric. Kelso wants to go home and watch the Christmas shows, but Jackie says that the shows are for babies. Kelso is frustrated that Jackie would not let him have any fun at all. Kelso has a dream where Santa tells him that he can watch the shows, till he believes in the Christmas spirit.

Bob turned on his noisy Christmas decorations on at midnight and was drunk. Red's whole night's sleep was disturbed due to the noise and the bright lights. Red is so angry at Bob's seasonal 'noise' that he hides his neighbors' decorations. Kitty is devastated as she thinks she is married to the Grinch. Bob and Red get into a yelling match as Red refuses to return the decorations to Bob. Eric comes by and yells at both to act decent for 1 day in a year and Red feels bad and tells Bob where the decorations are.

Eric had been asking for a cassette player for his Vista cruiser, but sarcastically tells Kitty that he wants a raincoat, so Kitty gets him a raincoat for Christmas. Eventually the gang finds Eric at home and asks him to come back, and they gift him the cassette player that he wanted.