Poor Pete the Pup. He wants to hang himself because his master, Joe, has given up playing with him and going fishing for the love of a girl. A dog friend of Pete's stops him in the nick of time, and in flashback Pete tells him of his sorrows; Pete becomes a drunkard and is chased away by Joe. The last straw comes when another dog knocks Joe's sweetheart into a lake and Pete is blamed for it. Will Pete carry through with his suicide or will Joe apologize?
The kids decide to put on a circus at the local hotel. Seeing various pets and other domestic animals dressed up like circus animals was very cute--particularly the dachshund dressed as a seal! However, the animals all get loose and terrorize the hotel guests--including a drunk played by Oliver Hardy.
On Christmas Eve, the Gang copes with hardships, helps capture a gang of thieves, and learns that Santa Claus really exists for those who wish fervently enough.
