Ryan is officially introduced to the bi-religious holiday of 'Chrismukkah', thanks to Seth who has set this up for his parents; the Catholic Kristin and the Jewish Sandy. At the same time, Seth insists he has two Godly forces helping him as he continues to play both Summer and Anna by claiming he has chosen the other. Meanwhile, Marissa slides more into depression and debauchery over her family life problems and gets arrested for shoplifting with Ryan. It gets worse when she gets drunk at Seth's 'Chrismukkah' party and nearly gets arrested for drunk driving. Ryan covers for her. Then he gets into a fight with Marissa, saying she can't do this to herself anymore. Kirsten risks more than just her job by speaking out about her father Caleb's shady business deals. Summer and Anna find out about Seth's two-timing them and decide to give him a 'very special gift' to make him choose which one he wants to be with.
Christmas has come to Newport, and Seth, Sandy, and Kirsten introduce the concept of Chrismukkah to Ryan. As Seth wraps presents in the pool house, he tells Ryan that he's giving Anna and Summer the same present, which Ryan tries to talk him out of, telling Seth that he's going to have to choose a girl eventually. Sandy reveals that he's not going to be home for the holidays, seeing as how Caleb is going to take him to court despite his saying that if Sandy's firm met his offer, it could be avoided. Meanwhile, Jimmy has a job interview, and Marissa tries to tell him that he can skip Christmas due to him not having money to buy presents, which Jimmy says isn't going to happen. He assures her that he's going to find a job, and Christmas will go on.
On the other hand, Ryan finds out that Seth is taking both Summer and Anna to a big party for Christmas. Anna and Summer appear, asking about times to be picked up, and both end up feeling awkward in the presence of each other. Julie is arranging the Christmas party for the town. Kirsten talks to Caleb, and after getting upset at the way he's taking the case, declares that she's taking Christmas Vacation off for herself.
Marissa and Ryan find out that they're both going to the Newport Christmas party, and decide to meet there as dates. Ryan and Marissa go Christmas shopping after school for presents. As they prepare to leave, Marissa is stopped by a security guard asking to see inside of her purse, saying that if she refuses he'll have to call the police. It turns out that she'd shoplifted a watch that Ryan had expressed interest in at one of the stores. Back at home, Seth finds presents for Ryan that had been sent from his mother and brother. Kirsten is going through old records, trying to relax and ease herself into a work-free vacation, and finds something of interest. Meanwhile, Julie shows up while Jimmy is talking to Marissa about the theft, and it escalates into an argument between the three of them. Julie takes away Marissa's allowance, car, and going out privileges as punishment. Julie reveals that she called the therapist for Marissa, and she's going to see him in the morning. As Ryan gets ready for the party, he tells Seth about Marissa's shoplifting incident. Seth reveals that he'd bought Ryan a stocking, which Ryan likes. Sandy comes home earlier than expected, and reveals that he and Caleb have reached a settlement, which ended up being for two hundred and fifty million dollars. Kirsten gives Sandy a sheet of paper, which is what she found earlier, telling Sandy that she'd be fired for sure after giving it to him.
Anna and Summer show up unexpectedly and begin to argue, but Seth solves the situation before it could grow out of control. Ryan tells Marissa that he thinks its a good idea for her to go to therapy, and she goes off, apologizing immediately afterward. While Ryan goes upstairs to get something for her, she takes a bottle of vodka and hides it in her purse. At the party, Julie's nervous about whether or not she did a good job of organizing the party and what Caleb thinks of it. Julie interrupts a make out session between Ryan and Marissa, and they begin to argue. Marissa goes to the bathroom to get away from her mom. Sandy goes to Caleb and reveals what Kirsten had given him; a geological map of the wetlands. The map revealed that the entire area was geologically unstable, and that it was practically worthless, proving that Caleb was just trying to get money because he'd know that he couldn't possibly get a permit to build there. Sandy offers to buy the wetlands back for a dollar, and when Caleb refuses, gives him the money anyway, walking off.
Meanwhile, Anna gives Seth his Christmas present ; a handmade comic by her, which he likes. They see Summer watching them, and it kills the mood before they could kiss. In the bathroom, Marissa locks the door behind her and starts drinking the vodka she'd stashed away. Summer takes Seth into a private room, and reveals her Christmas present to him; her, dressed as Wonder Woman under her dress. Anna walks in on them as Summer is looking at her present to Seth. They both realize that they're being stupid at trying to win Seth over, and Summer tells him that he needs to pick between them and leaves, Anna following Meanwhile, a drunken Marissa goes and dances with Ryan, showing him the bottle of vodka that she'd drank in the bathroom. They argue, and Marissa leaves. Ryan runs after her, and tries to get her to let him drive, standing in front of the car to prevent her from leaving. She backs up to get around him, and hits a car behind her. Caleb announces that he's giving the trust over to Sandy's company for a dollar.
Tensions mount in the car as Ryan drives Marissa home. Marissa drops the top to the vodka on the floor, and as she's searching for it, the cops pull them over because of the broken tail light that Marissa caused when she'd hit the car. Marissa hides the bottle between her feet on the floor, and just as the cop was asking her to get out, he gets called away. Ryan gets off with just a warning for the tailight, to his relief. Ryan gets mad, throws the bottle away, and starts slamming the door to the car. Marissa tells him to stop, and he does, but not after he tells her that she's scaring him. The next morning, Seth fills Ryan in on what happened between him, Anna, and Summer, and Ryan tells Seth about the incidents with Marissa the night before. Ryan says he hates Christmas, and Seth declares it a Chrismukka miracle that Ryan didn't get caught the night before, restoring his faith in the holiday.
Later, Seth talks to Summer and Anna seperately, telling them both that he just wants to be friends with them. Both of them tell him that they don't want to be just his friends, and gives him back the presents he'd given them. Caleb drops by to talk to Kirsten about what she'd done. Ryan decides to go with Marissa to go see her therapist, and Sandy talks him out of it. Marissa goes to the therapist office, and is about to leave so that she doesn't have to go see the therapist, when she gets into a conversation with a guy that knows her from school, Oliver Trask. Marissa is surprised when Oliver guesses everything that's happened to her, about nearly becoming an alcoholic, and overdosing on pills. Ryan ends up hanging his stocking, and him, Kirsten, Seth, and Sandy end up going to watch a movie.
:Seth to Ryan: "So what's it gonna be huh? Your menorah or your candy cane? Hmm? Christmas or Hanukkah? Ah! Don't worry about it buddy, because in this house, you don't have to choose. Let me introduce you to a little something I'd like to call...Chrismukkah."
:Seth to Ryan: "Come on man...lighten up! -beat- Fine, stay dark. Dark works too."
:Seth to Ryan: "I've got Jesus and Moses on my side man."
:Oliver Trask to Marissa: "You really didn't want to hurt yourself. Now Kurt Cobain...he wanted to hurt himself."