Hyacinth has decided that as it is Christmas, Richard should help distribute gifts to the old people at the Church Hall, dressed as Father Christmas. Richard, feeling an idiot, goes to show Elizabeth and Emmet, and he and Emmet proceed to get incredibly drunk. Meanwhile, Rose has a new boyfriend called Mr Sudbury, and Onslow and Daisy watch in amazement as Mr Sudbury and Rose dance down the road.
Later, Elizabeth discovers Richard and Emmet, and as Richard is too drunk she decides to dress up in his Father Christmas outfit and drive Hyacinth to the Church Hall. Richard and Emmet follow on the bus.
Hyacinth has invited Richard's Head of Department, Mr Thorgunby, and his wife over for some mulled wine and mince pies. While on her way to the Church Hall with Father Christmas, who she thinks is Richard, she spots Daisy, Onslow and the Thorgunby's on their way to her house. She waylays the Thorgunbys, and takes them to the village hall where she meets the vicar, who tells her that Daddy has gotten very drunk, has shed his clothes and is creating a few problems.
Hyacinth eventually finds Daddy. She also sees Father Christmas being kissed by Onslow, but she discovers that it is Liz, and finds out what happened. Richard, Onslow and Emmet go off to find Daddy's clothes, and Hyacinth, dressed as Father Christmas, puts Daddy in the car. Onslow, thinking Father Christmas is Liz, goes and gives Hyacinth a kiss. Emmet appears, followed by Rose, who kisses him before also kissing the vicar.
Eventually Hyacinth, by this time rather mellowed, invites everyone around to her house for a glass of mulled wine and a hot mince pie, and they all go off happily together.