George Bailey spends his entire life giving up his big dreams for the good of his town, Bedford Falls, as we see in flashback.
But in the present, on Christmas Eve, he is broken and suicidal over the misplacing of an $8000 loan and the machinations of the evil millionaire, Mr. Potter.
His guardian angel, Clarence, falls to Earth, literally, and shows him how his town, family, and friends would turn out if he had never been born. George meant so much to so many people; should he really throw it all away? - Written by Tommy Peter
Note that this program is done in the Claymation animation style, not SpongeBob’s usual 2D animation.
Plankton, Mr. Krabs’ nemesis, vows to get his Christmas wish – obtaining the Krusty Krab’s secret Krabby Patty formula – by turning everyone bad in Bikini Bottom with the help of his special jerktonium-laced fruitcake.