On the day before Christmas, Pikachu and its Pokémon friends are playing in a snowy town. But their snowball bowling game goes awry, and Totodile's snowball knocks a passing Delibird out of the sky! Delibird crashes down onto Meowth and Wobbuffet, who were out for an innocent stroll, but a wild Skarmory is annoyed at the racket and sends them all blasting off. Delibird has another bumpy landing, and now it's in a panic because it's lost all the presents that were in its sack. If they're not found by midnight, they won't be delivered for Christmas! Fortunately, Pikachu and its friends will help Delibird find all the presents.
Everyone splits up into two groups. Pikachu's group finds one present on top of a boat, while Bulbasaur's group spots another present in the forest. A third present is retrieved from the clutches of a wild Aipom. Just before midnight, the two groups meet up in town and discover the last missing present in a tree. When they try to grab it, it goes flying into the air and the wild Aipom comes to the rescue with a last-minute catch! Now the presents are in place and the holiday is saved, thanks to Pikachu and its friends.
Near a Pokémon Center on a snow-covered seashore, Pikachu and its friends make a Snorlax out of snow. That night, they wake up to see the snow Snorlax outside their window, come to life! All the Pokémon sneak out to play with the Snorlax, who leads them to a fruit tree growing on a cliff. Snorlax wants the fruit, but the cliff collapses under Snorlax's weight. Fortunately, everyone lands on the Snorlax, which acts just like a sled—but it slides all the way out to the shore and right onto a drifting ice floe!
The drifting Pokémon are sucked into a whirlpool, but Snorlax freezes the whirlpool into an icy viewing platform where everyone can watch Water-type Pokémon swimming through the sea. The Pokémon try to sail away on a boat made of ice, but it falls apart and two Lapras come to the rescue. They bring them to a land of Snorlax snowmen, where the snow Snorlax can join its friends, then take Pikachu and the gang back home. Pikachu and its friends fall asleep and wake up the next morning, back in the Pokémon Center. Their snow Snorlax is still outside—as it all a dream, or just some wintertime magic?