Akane comes across two children who are holding a drawing of Happosai. Hanako and her brother tell Akane that Happosai is actually Santa Claus and that they met him last Christmas Eve. Happosai promised the two children that they could be his helpers if they ever found him again, not thinking that they would track him down.
After saying goodbye to some of her friends, Akane sees a small girl named Hanako along with her brother. Curious, Akane wanders over and asks the pair if anything's wrong which prompts Hanako's brother to shyly explain that they're looking for an old man. The boy then holds up a crude pencil drawing which leaves Akane in stunned silence as she sees how similar the drawing is to Happosai.
At that moment Happosai arrives whilst trying to escape a group of pursuing women after one of his usual panty raids. Upon seeing Akane he immediately jumps towards her but ends up getting kicked to the ground by Ranma, allowing the women to beat up the old lecher before heading back home.
With Happosai now left immobilised, Hanako's brother starts checking the old lecher's appearance to his drawing. Looking on, Akane asks Hanako's brother what he wants with Happosai (believing he might've stolen something from the pair), but Hanako and her brother retort that Santa Claus doesn't steal before happily exclaiming that they've finally found him. This exclamation causes Happosai to freeze from shock and he remembers who the pair are, although Ranma and Akane still don't know what's going on and so demand an explanation from Happosai.
After clearing his throat, Happosai explains that during the previous Christmas Eve when he was returning home from one of his nightly rounds when he spotted a pair of lonely stockings hung by a window. However, when Happosai went to retrieve the stockings for his collection he was hit on the head by a large weight before being caught in a net. The person who caught Happosai was Hanako and her brother, under the belief that it was Santa Claus.
Having now returned to the Dojo, Ranma quietly asks Happosai why he went along with the pair, causing Happosai to say that he couldn't bring himself to disillusion two young tykes like them, especially when they told him their father was out of town while their mother wouldn't be home until later. Upon hearing this, Happosai decided to indulge himself in the households Christmas dinner, although Happosai viewed it as bringing some cheer to the pair (although Ranma doesn't believe this for a second).
Finishing off his story, Happosai also reveals that when he finally left Hanako's brother asked to be Happosai's helper which prompted the drunken Happosai to tell the pair to come and see him anytime so that he can make them disciples before taking his leave.
Once Akane's curiosity about why Happosai would say such a thing is settles when he tells her he never expected them to find him, Hanako's brother shows Happosai the panties which Hanako took from the old lecher's bag which has the Dojo's address written on the back. After Ranma hits Happosai for his stupidity, Hanako's brother asks "Santa" to make him and Hanako his disciples as they don't care how hard it may be.
As Happosai starts thinking about what to say, Akane questions the old lecher about what he plans to do now, but Happosai soon decides not to go back on his promise and the three of them head out to start their training.
The trio then wander around Nerima until they arrive at a house with women's underwear being hung out to dry. Happosai wastes no time in taking the underwear with the assistance of Hanako and her brother until Ranma reappears and demands to know what Happosai thinks he's doing. Still keeping his guise as Santa Claus, Happosai proceeds to stuff Ranma's clothes with the stolen underwear which causes the owner of the underwear to come out and see what all the noise is, before sending Ranma flying into the air.
Some time later and Happosai takes his new disciples to the wall outside the female half of the local bathhouse where Ranma attempts to intervene again. After a brief argument with Happosai, Ranma tries to tell Hanako and her brother about Happosai not really being Santa Claus. Unfortunately, Happosai stops Ranma mid-explanation by knocking him into the women's bath causing Ranma to get beaten up by the angered patrons whilst Happosai and co. make their escape.
Having lost Ranma, the group head off to a Ramen house where Happosai tries to teach Hanako and her brother about how to skip out on a bill, however, once Happosai manages to leave the restaurant he sees that Hanako and her brother aren't following him. Curious, Happosai takes a peak back into the restaurant where he sees Hanako and her brother break their own piggybank in an attempt to pay the check for Happosai (who they believe must be poor having to spend all his own money on presents for others).
Eventually the now severely beaten Ranma finds Happosai and his new disciples in a nearby construction site. At that moment, Hanako asks Happosai what the next thing they're going to learn is, but Happosai becomes overjoyed at finally being treated with so much respect by one of his disciples. Having heard this, Ranma can't stop himself from crushing Happosai whilst telling him that he never got half of what he deserved.
After Hanako's brother asks Ranma to stop being so mean to Santa, Ranma proceeds to asks "Santa" if he has any conscious at all. This infuriates Happosai who declares to his new disciples that the next they'll learn is to do good deeds! Unfortunately for Happosai, when Hanako's brother asks what sort of deeds they'll do he can't think of anything but continues trying to think of something until he ends up short-circuitng himself.
Seeing that state that Happosai is now in, Hanako and her brother decide that this must be their fault as he never had this problem before so both declare that they will no longer be his disciples. However, Hanako's brother does reveal that he brought Happosai a present especially for him given his liking for underwear. Happosai immediately gets his hopes up at the thought of him getting panties, but is devastated when he sees that it's actually a pair of their father's Boxer shorts.
With Happosai having reached his limit, Hanako and her brother begin their journey back home.
That evening, as Akane and Ranma escort the pair back home, Hanako's brother comments that he never knew it would be so difficult to be Santa's disciple; although Akane and Ranma reassure him that he can still do good deeds. Akane then asks Ranma if he thinks Happosai feels even a little bit bad for all this, though Ranma wouldn't count on it. Suddenly, Happosai flies across the sky and explodes into a firework whilst telling Hanako and her brother to be good children so that their stockings will be full this year. Hanako's brother is overjoyed at this sight and so happily declares that Santa can do good deeds, whilst Ranma comments that he'd rather wait to see what Happosai fills the stockings with first.
Cast in Order of Appearance
- Akane Tendo
- Hanako & her Brother (debut)
- Ranma Saotome (male)
- Soun Tendo
- Genma Saotome (human)
- Deck the halls with bras and panties... ♪ - Happosai during his flashback, shortly before meeting Hanako and her brother.
To be added