While everyone decorates and writes letters to Santa, Squidward refuses to believe in Santa and all the Christmas cheer. On Christmas Eve, everyone waits outside singing for Santa, while Squidward goes to sleep. The next morning, it turns out Santa never came, and soon, everyone becomes angry with SpongeBob. After everyone has left, SpongeBob becomes heartbroken. His pain is only made worse when Squidward comes out and makes fun of him. SpongeBob gives Squidward a present that he would have given him so he would not feel left out if Santa came. Squidward unwraps the present to find a carved wooden clarinet, hand-made by SpongeBob. He becomes very happy, and becomes regretful of his actions. 