The Grinch and Cindy Lou Who compete in various Christmas challenges, including decorating gingerbread houses, making eggnog, and creating holiday wreaths. Ultimately, Cindy Lou Who wins, but the Grinch's heart grows three sizes and he gets into the Christmas spirit. They exchange gifts and wish each other Merry Christmas. Fun Squad is asked to vote on each challenge.
1. The Grinch is planning to ruin Christmas.
2. Cindy Lou Who has beaten the Grinch in two Christmas challenges before.
3. They have a competition to see who can make the better gingerbread house.
4. The Grinch cheats by using Cindy's gingerbread house from last year.
5. Cindy Lou Who wins the competition.
6. The Grinch gives Cindy Lou Who a present and his heart grows with the Christmas spirit.