One year after the events of the original movie, we are back on Evergreen Lane cul-de-sac with Emily and Jared now a happy couple excited to begin another year of Christmas decoration. The "Jolly" Johnsons are the new neighbors that move into and are the famous winners of a popular reality decorating show. The Johnsons really want to change things up and what starts as a friendly competition rapidly deteriorates into a frantic game of one-upmanship for the best Christmas décor. Ultimately, Emily remembers the true meaning of Christmas and refocuses everyone's energy on coming together as one neighborhood just in time for a magical Christmas proposal from Jared.