The special opens up at the North Pole, where Santa Claus and his elves are working on all the toys that Santa will deliver at Christmas. Doctor Claw has managed to sneak into the factory and disguise himself as Santa. He has also managed to install mind-control devices on all the elves, which he then activates, and orders them to capture Santa. His plan is to use the mind-controlled elves to make defective toys, for which the world will blame Santa. Meanwhile, he orders his MAD agents to destroy Gadget. Several attempts are made in the opening credits, all of which fail.