Larry's favorite time of the year has arrived. He races around his home trying to make everything perfect before his friends arrive for Christmas morning. During the celebration, he discovers a lonely monster named Walter, who is very sad. Larry asks him why he is sad and Walter explains that Christmas is a difficult time of the year because he is always alone and has no family. Larry invites him to spend the holiday with him and his friends. Walter shyly accepts the invitation and follows Larry back to his home. Walter is welcomed by Larry's friends and ends up having the most merry Christmas ever!