The movie begins with son Eddie feeling homesick for Transylvania. Herman decides a "good old Transylvanian Christmas" is what his troubled son needs to get in the mood for the holidays. Together with the family - including Lily, Grandpa and Marilyn, he sends out invitations to the entire Munster family, including The Wolf Man (1941 film), Mummy, and the Gill-man. Herman also asks for a raise from his boss and is fired, taking on other jobs such as modeling nude for an art class, donating blood, and wrapping presents. Meanwhile on Christmas Eve's eve, one of Grandpa's experiments has gone awry, accidentally transporting Santa Claus and his elves to the Munster Mansion. Christmas faces ruin as there is no way to send Santa home, and the entire family must find a way to save Christmas. Meanwhile, Marilyn falls in love and Lily enters a home decorating contest, with nosy neighbour Edna Dimitty (from the previous Munster movie ''Here Come the Munsters'') causing trouble. Eddie also faces trouble at school from bullies.