As he passes out invitations to his New Year's Party, Pete the Cat figures out what a New Year Resolution is. Using the "definitions" and examples of his friends, Pete works through the process of coming up with his own resolution.

After performing a play about the Legend of the Christmas Cat, Pete and the gang try to find the real Christmas Cat so that they can get some cool gifts. During their hunt, they end up helping various families along the way. Will they find out that giving is the best way to truly enjoy the holiday?