When the postman mentions that Iggy's letter to Santa is being returned, Heathcliff is concerned that Santa may be retiring. There's only one thing to do. With Spike's help, Heathcliff mounts a north pole expedition. Polar Bears and arctic weather are only a few of the obstacles faced by Heathcliff and his dog sled...pulled, of course, by Spike. But their biggest problem comes in the form of a renegade elf who used to work at Santa's toy factory but was laid off. Angry at Santa, the elf tries to stop Heathcliff from reaching him. But eventually he sees the light and the three of them go to Santa. The elf confesses to having returned the letters and begs forgiveness. Santa takes him back, deciding to let the elf ride on the sleigh this Christmas. Santa asks Heathcliff and Spike if they've been good, and of course they say they have. A somewhat skeptical Santa tells them to try and get along better with each other and they promises to make the effort. Santa drives Heathcliff and Spike back home in his sleigh, a real treat for both of them. / Mungo's kid brother, Mingo, is running with a bad crowd so Granny sends him to Mungo to straighten him out. But bad behavior isn't cured so easily and Mingo joins up with Mad Cat Mel as they try to take over the junkyard. Mingo and Mungo are the last to be paired together in a joust winner-take-junkyard. But Mungo won't fight his brother and Mingo finally comes to his senses and they chase Mad Cat Mel and his gang away.