Finally alone for the holidays, Luther (Tim Allen) and Nora Krank (Jamie Lee Curtis) plan to eschew the Christmas traditions and take a cruise in the Caribbean instead. This doesn't sit well with their Christmas-obsessed neighbors Vic Frohmeyer (Dan Aykroyd) and Walt Scheel (M. Emmet Walsh), who are determined to win the annual "best decorated street" competition, and the Kranks soon find themselves social outcasts because of their lack of Christmas spirit.