Future Shaundi informs The Protagonist that Clawz has been manufacturing weapons instead of whatever items the kids normally asks for and that the elves resistance are going to fail unless they help them stop Clawz.
The Protagonist, Future Shaundi and Santa arrive in the North Pole and head for the workshop. There are Snowmen set up around the North Pole mocking Christmas, much to Santa's displeasure, although Future Shaundi warns them that the Snowmen mocking Christmas is only the beginning. Upon getting to the courtyard outside the workshop, Santa finds his prized pine tree ablaze and the heads of his reindeer on pikes, much to his dispair. The Protagonist warns Santa to stay back but refuses and declares he's taking back the North Pole, being backed up by Future Shaundi. Tinsel ,the leader of the Elf resistance, calls out to Santa and warns him about the fleet of mechanical reindeer that Clawz has been creating.
After clearing the courtyard, the trio finds the entrance locked, this prompts The Protagonist to ask where the stables are. They find the Robo-reindeer Tinsel mentioned, much to Santa's and Future Shaundi's disgust. Future Shaudi, disgusted at the sight, attempts to curse. but restrains her bad language, much to The Protagonist's surprise. Future Shaundi points out is due to Santa being with her, but Santa mentions that bad language doesn't bother him. After deactivating the Robo-reindeer, Twinkle arrives and declares how Clawz made him and other traitorous elves a deal to work for him and enlarged them to human size. After a brief chase, Twinkle and the trio arrive at the workshop's back entrance only to find it crawling with elves. Twinkle is eventually killed and Santa becomes upset with Twinkle's traitorous deeds and death. Future Shaundi assures Santa that everything will be fine, but The Protagonist shows little emotion or care.
The group enters the workshop packaging area and Santa informs the Saints that the only way into the workshop is via the conveyor-belt. Future Shaundi tries to get through to The Protagonist about why they don't care, although they remark that they are not going to fake being interested leaving Future Shaundi saddened by The Protagonist's lack of care. The Protagonist and Santa puts on Christmas packaging for disguise and Santa asks Future Shaundi to stay behind, although Shaundi refuses to leave Santa's and refuses to give him up, but Santa eventually convinces her that she needs to stay behind, although asks Santa to not forget her and promises Future Shaundi that he won't forget.
The Protagonist and Santa gets into the workshop and finds Mrs. Claus and the elves fighting back against Clawz's Gingerbread men and Nutcrackers. Mrs. Claus assures The Protagonist and Santa that The North Pole is safe, and surprises The Protagonist that The North Pole was a weapon, in which Mrs. Claus confirms. Santa tells The Protagonist that there might be a gift for them, in which they find a Christmastime Dubstep Gun, much to The Protagonist's happiness. Clawz shows up and attack them, but he eventually gets repealed back, in which The Protagonist points out that he may have jumped simulations.
After going back outside, Santa expressed sadness that the workshop is in shambles, but is assured by Mrs. Claus that it can be rebuilt, getting slight acknowledgement from The Protagonist. As The Protagonist and Santa get on the Sleigh and prepares to track down Clawz, Santa remembers that Future Shaundi is still in the workshop, so Mrs. Claus agrees to get her while The Protagonist and Santa go to save Christmas.
After licking the candy instead of going to stables, it is revealed that the door is locked. It's much faster to go directly to Stables, though The Protagonist can still lick it for some hilarious lines. This will also grant The Protagonist the Minty Fresh! achievement.
Licking candy can take a while. It's best to have a Co-Op player to decrease the time needed to licking the candy.
In Co-Op mode. There's a bug where one of the player's Christmas package is invisible, this does not affect the gameplay however.
One of the caves on the outskirts of town contains a blue Portable toilet labeled "Turdis" with pooping noises. This is a reference to the Tardis.
In back of the first cave, there is a gingerbread man hanging upsidedown from the ceiling which is missing a head and 1 arm, with a red candy-cane themed lightsaber nearby. In The Empire Strikes Back, Luke Skywalker is in a similar situation.