Casper and his friend Hairy Scarey are in a house about to be demolished on Christmas Eve and go out to look for a new place to move to after Christmas in California. Then Yogi and his friends get lost and arrive at Casper and Hairy's house and clean and decorate it to celebrate Christmas. Then Casper befriends Yogi and company only for Hairy to try to ruin the party with Casper and his new friends. Then Hairy has a change of heart and celebrates Christmas with Casper and his new friends and ending with Santa Claus saving the house and turning it into Hairy's Haunting Lodge.