Donald Duck cuts down a Christmas tree and brings it back to his house, prompting Chip and Dale to follow him and find out what he is doing. When they look through the windows of his house, their eyes set on the Christmas goodies - specifically the walnuts. They sneak in through the mail slot and load the nuts into a toy truck. Donald spots the thieving chipmunks and, after a failed effort to recover the nuts, dresses as Santa Claus to trick them. He gives Dale (the dumb one with the big, red nose) a regular-sized walnut and Chip (the smart one with the chocolate chip-sized nose) an enormous walnut. Predictably, the two of them squabble, but Donald eventually finds the two friends united again to go to war against him. They have the toy cannon, and Donald has the toy machine gun. The old telephone gag (in which one party sends an explosive through the phone wires) finally puts an end to the Christmas eve fighting.
—J. Spurlin