Terence's preoccupation with making bubbles interferes with his assisting Winona as she gets ready to throw a Christmas party; Sploshy receives a lot of help wrapping a holiday gift for Tubb; Finbar imagines a place where he would receive presents all the time; and the gang sing a holiday tune while Terence accompanies on the xylophone.
Reg tires of being a landlubber and longs to join his friends in their undersea adventures; soon after Sploshy's wish for a tail like Winona's comes true, the starfish-shaped sponge comes to appreciate her own appearance.
Reg falsely claims to be an expert on the moon; Sploshy shows her friends that mopping the bathroom floor doesn't have to be a chore; Tubb learns that winning isn't everything---having fun counts, too.
Tubb learns a lesson about team work when he imagines himself to be the conductor of a runaway train in the Wild West. Later, to cool off on a hot day, Sploshy pretends to visit the Arctic and encounters a world-famous explorer, along with two mighty hungry polar bears.