Burt Worm has just moved into the town of Wormingham. Excited for the Christmas season he is invited by his neighbor, Crystal, to assist in decorating the Town Hall. Due to his clumsiness chaos is caused in the Town Hall, and holiday decorations are knocked over and broken. Burt is asked by chairworm Wormaline Wiggler to leave immediately. Which he does.
Burt proceeds to sing a song about how he is so lonely, and just wanted to make some friends. He writes a note and leaves. Soon after his disappearance Crystal asks where Burt is, and is told that Wormaline asked him to leave. The mayor shows up shortly after, and is upset with Wormaline for asking Burt to leave, stating that Christmas is for everyone, the mayor threatens to remove Wormaline from her position as chairworm. With this threat in mind Wormaline organizes a search party for Burt worm.
The search proceeds, but the weather gets so bad that the Mirthworms have no choice but to return to Wormingham. Upon arrival at Town Hall many of the Mirthworms express how sad they are that Burt has left, stating that they really liked him. As the Mirthworms are moping about Burt walks up to them asking why they are so sad, they state that it is because they fear the worst for Burt (not realizing that it was he who asked them). When they realize that Burt is there, they are surprised and happy. Burt explains that it got so cold that he decided to come back to the Town Hall and fell asleep.
Under pressure from the mayor Wormaline apologizes to Burt for asking him to leave. Then Crystal announces how Burt can contribute to the Christmas celebration, he has an excellent singing voice. Burt proceeds to sing "Deck the Halls", and "I Wish You a Merry Christmas" (a modified version of "We Wish You a Merry Christmas").