It is a few days before Christmas on Sodor. Percy puffs into the scrapyard with a trainload of scrap for Reg. Percy looks around the scrapyard and notices that it doesn't look very Christmassy at all.
That evening at Tidmouth Sheds, Percy explains that the scrapyard looks very dull in comparison to the rest of the island. He tells Thomas that he will have to do something to cheer Reg up.
The next day, Percy takes a Christmas tree to the scrapyard. Before Percy could tell Reg what it is for, Reg has picked it up and fed it into the wood chipper. Percy explains that the tree was for Reg who apologises for scrapping it.
At Knapford, Percy spots some carol singers on the platform. Percy takes the carollers to the scrapyard where Reg smiles politely, but he has lots of work to do. Percy explains that the carol singers are to cheer up the crane, but Reg says that he doesn't need cheering up and he is rather busy. Percy is still sure there is something he can do to cheer up Reg, but he is starting to run out of ideas.
Percy returns to the sheds and thinks hard about a present he can give to Reg. Percy trundles sadly along to the scrapyard where Reg spots him. Reg thinks Percy looks very sad and asks what's wrong. Percy explains that he had been trying to find Reg a present to make the scrapyard look festive. Reg explains that Percy has brought him something special and he lifts up a piece of scrap from Percy's trucks. Reg has been making a giant Christmas tree out of scrap. An old fan will be perfect for the star at the top of the tree. Percy thinks the tree looks splendid. Reg then finds another fan that looks like a star and gives it to Percy who is delighted; now the engine sheds will look extra special.