The episode begins on a clear, starlit night at the Happy Tree Friends' school in the middle of the forest.
Generic Tree Friends fill the auditorium, where onstage, Chips lies in a bed in front of a set resembling a bedroom. Offstage, Lumpoo, the director of the play motions for Todd to walk onstage. Holding a candle, Todd moves to the center of the stage when a spotlight shines several feet to the right of him (his right). Lumpoo then tells Robo Star , who is operating the spotlight, to move the light onto Todd. Lumpoo then motions up to Pranky and Pierce, who stand above the stage. The two begin shaking an upside down and obviously upset Toad, his dandruff acting as snow for the background. With everything in place, Lumpoo motions for Todd to start singing.
Todd begins singing "O Tannenbaum", while Cuddles, Lifty, and Mime come onstage dressed in cardboard cutouts of a present, a candy cane, and a Christmas tree, respectively. From Chips's point of view, however, he can only see the top part of Lifty's candy cane costume; on top of that, the spotlight made the costume look like a divine treat. Todd stops singing upon hearing a crunching noise and a scream. Everyone looks over to see Lifty with a big bite mark on his costume and torso. Everyone looks over to see Chips lying in bed with blood on his face, giggling happily, unaware that he just consumed cardboard and flesh rather than part of a candy cane. A scared Todd looks over to Lumpoo, who tells him to keep singing, despite Lifty's screams of pain.
Todd begins singing again, but he sings a little uneasy. While Todd continues singing, Lifty runs offstage and gets the curved part of his candy cane costume caught on a rope, causing a sandbag to drop and knock Cuddles' costume off his body. Unfortunately, this also cuts his face off, which lands at Todd's feet. Horrified, he looks back at Lumpoo for guidance. Once more, Lumpoo motions Todd to keep singing.
By now, Todd can barely sing as he sobs in fear. Cuddles runs around the stage in a panic, until he slips on his own face. Cuddles' face flies up and hits Robostar in his face, causing him to swing the spotlight over to Pranky and Pierce. They give a cry of shock and throw their hands up to shield their eyes, dropping Toad in the process. He falls down the chimney in the set, his quills seen poking through as he made his way down. As he emerges out of the fireplace, his skin and quills had been completely ripped off. Todd and Mime become horrified and look over to Lumpoo yet again. Lumpoo, now realizing the problem of the situation, is seen climbing out the window. Upon Lumpoo escaping, Mime and Todd run away offstage in fear, but not before Todd tosses his candle into the air.
The candle lands right by the curtains, setting them ablaze. Cuddy screams in fear while everyone starts panicking and running from their seats. Mime is the first to reach the door, but in all the confusion, he forgets to remove his costume. He gets stuck in the doorway, while numerous Generic Tree Friends run against him, trying to get out. Eventually, Mime is forced out of the face-hole of his costume, squeezing his head into a red, cylinder-shaped glob of blood resembling a slinky as it bounces down the stairs. Finally, his costume breaks, and the audience comes flooding out of the burning school.
Pop stands next to Lumpoo, the entire right side of his face and hat burnt. Lumpoo starts clearing his throat and sighs (after one of the Generics run away with fire all around him/her) before looking around at the damage. Robo Star's cane has impaled him through his eye, Lucario is burnt and bruised, Pikachu is screaming in pain as a Christmas star is lodged in his head and most of his left fingers have been cut off, and slowly, Mime weakly moves his hand. Blood and organs are everywhere.
Chips appears to have been lightly burned, crying as well, and has some blood on his fur (though it's not clear if it's his or someone else's). Toad is kneeling on all fours, freezing without any skin. In the background, Toothy tries to comfort a burnt Generic Tree Friend while a flipped out Itchy stabs another Generic Tree Friend. Cuddles laments the loss of his face, Lifty looks nervously at the gaping hole in his torso, and Bowser stares horrified as he is now missing both of his feet.
Cro-Marmot stands off in the distance (strangely and seemingly undamaged), and Pierce drags a wailing Pranky (who is missing the bottom half of his body) away. Everywhere, dead and dying Generic Tree Friends litter the ground. Behind Todd, Splendont lands in the middle of it all, apparently having been alerted by the Tree Friends' screams, yelling, shrieks, and crying.
Todd starts facing down at the snow, upsettingly thinking about what he had triggered after he accidentally threw the candle moments ago, but as a shooting star flies by in the background, he straightens up, determined and steadfast. Once more he begins singing, and everyone looks up. The cries, shrieking, and whimpers stop and everyone smiles, moved by Toodd's singing (except for Itchy who continues stabbing his victim). Even Lumpoo is moved to tears by the sound of Todd's voice. Suddenly, everyone starts joining hands, and bones around the burning school, joining Todd in his song. Cuddles joins hands with Britton, as well as Pop with Toad, and Cuddy with Toothy. Before long, every known character in Happy Tree Friends is seen singing along with Todd while holding hands around the now burning school. As the camera pans up into the sky, we see a giant twinkling star shimmering with all its glory. When suddenly, the school explodes and burning bodies are sent flying everywhere. Then the iris closes in on the twinkling star.