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The Cosby Kids are rehearsing for a Christmas pageant at their junkyard clubhouse, which Tyrone, the mean old junkyard owner, is fixin' to tear down. That's when Marshall & his parents show up. With their car broken down, Marshall's mom is about to have a baby and his dad, without health insurance, inspires the gang to invite them in the clubhouse for shelter. Tyrone agrees to let them stay until the baby is born, in exchange for Fat Albert working for him as a sidewalk Santa. "Ho-ho-ho's" in Fat Albert fashion ensue. After the old hobo, Mudfoot, gives Tyrone a lecture about how he's been grumpy at the world ever since his wife died, the junkyard owner has a change of heart and promises to keep the gang's clubhouse in tact.