The special begins on a frozen pond, put to use as an ice rink by the Peanuts cast, who skate and sing "Christmas Time Is Here" over the opening credits. It's Christmas season, and Charlie Brown is depressed. He confides in Linus this fact, citing his dismay with the over-commercialization of Christmas and his inability to grasp what Christmas is all about; Linus dismisses it as typical Charlie Brown behavior at first. Brown's depression and aggravation only get exacerbated by the goings-on in the neighborhood. Though his mailbox is empty, he tries sarcastically to thank Violet for the card she "sent" him, though Violet just uses the opportunity to put Brown down again. Eventually, Charlie Brown visits Lucy in her psychiatric booth. Lucy, after presumptively diagnosing him with various phobias and admitting she wants real estate as a Christmas gift, determines that Charlie Brown needs more involvement and recommends that he direct a Christmas play. On his way to the auditorium, he finds his dog Snoopy decorating his doghouse for a neighborhood lights and display contest. En route to the rehearsals, he runs into his sister Sally, who asks him to write her letter to Santa Claus. When she tells him to put in a request for money ("tens and twenties"), Charlie Brown becomes even more dismayed...