The film begins with Gonzo as Charles Dickens and Rizzo the Rat in the streets of London in the 19th century. Dickens tells us of a terrible old man named Ebenezer Scrooge who charges high prices for those who rent from him in the buildings he owns throughout the town. He's become rich, but cold and bitter towards his fellow man.
We meet Bob Cratchit (played by Kermit the Frog), Scrooge's faithful bookkeeper and we find him and the other employees asking Ebenezer for Christmas Day off, an idea he is not fond of but allows. Scrooge sees Christmas time as one where people squander their mortgage money on frivolous things. Scrooge goes home for the evening and finds himself visited by his former business partners Jacob and Robert Marley (Statler and Waldorf) who tell him he will be visited by three spirits this night and he must repent for his wicked ways.
The clock strikes one o'clock in the morning and Scrooge is visited by the first ghost, The Ghost of Christmas Past. He is taken back into his life and affected greatly by seeing himself as a young man rejecting Belle, the woman he truly loved but whom he chose to abandon for his seeking of making money. We see that Scrooge had a wonderful mentor who he is nothing like, and then Scrooge return back to the present where The Ghost of Christmas Present takes over.
The Ghost shows Scrooge the present Christmas. He takes him to Fred's home where Fred makes fun of Scrooge, and then to the Cratchit home where he finds Bob and his family including Tiny Tim celebrating Christmas with joy although with little means. He learns that Tiny Tim will soon die of his sickness. Then Scrooge is transported to the future by the ominous Ghost of Christmas Yet to Come. He is shown his funeral where people will only come if there is free food, and where his hired staff are seen exchanging things they stole from Scrooge upon his death.
Scrooge jolts awake to find that it is actually Christmas Day. He decides that he must change his ways and sets out for Cratchit's home with a turkey dinner in tow. He pretends to be mean towards the family until he reveals that he is going to give Bob and raise and pay off his mortgage. Dickens, the narrator returns to tell us that Scrooge went on to become like a second father to Tiny Tim who ended up living. And Scrooge's joy has returned as they celebrate Christmas.
