In the opening scene, Lucy playfully encourages Charlie Brown to attempt kicking her football, as they traditionally do for Thanksgiving football games. However, Lucy repeatedly pulls the ball away at the last moment, teasing him and telling him that some traditions fade away. This recurring joke sets the tone for the story, emphasizing the playful yet sometimes frustrating dynamics among the characters.
As the day begins, the Brown siblings are preparing to visit their grandmother for a special Thanksgiving dinner. During this time, Charlie Brown receives a surprising call from Peppermint Patty, who explains that her father is out of town and, without invitation, invites herself — along with Marcie and Franklin — to join the Browns for Thanksgiving. Despite not having plans for himself or being able to cook anything beyond simple "maybe toast," Charlie Brown finds himself caught up in the holiday spirit.
To make the occasion special, Linus suggests they prepare a heartfelt Thanksgiving meal for their friends before heading to their own family dinner. He volunteers Snoopy and his faithful companion Woodstock to help. Outside, Snoopy sets up a makeshift outdoor dinning area with a ping pong table and chairs, transforming their yard into a cozy setting. Together, they whip up a modest feast consisting of toast, pan-fried popcorn, pretzel sticks, jelly beans, and sundaes — a humble but charming version of a Thanksgiving meal.
When Peppermint Patty, Marcie, and Franklin arrive, the group begins their meal with a heartfelt prayer led by Linus, who recounts the story of the First Thanksgiving, adding a touch of tradition and reflection to the occasion. Snoopy then serves the food, but Peppermint Patty is visibly disappointed, expecting a traditional turkey and typical Thanksgiving dishes. She becomes upset and ends up yelling at Charlie Brown, causing him to leave the table feeling hurt and dejected.
Marcie steps in to mediate, suggesting that Peppermint Patty may have been too harsh on Charlie Brown and questioning whether she truly invited herself or if he invited her. Recognizing her mistake, Peppermint Patty realizes she owes an apology and asks Marcie to do so. After some hesitation, she then takes responsibility and apologizes directly to Charlie Brown, restoring some of the camaraderie among them.
Meanwhile, realizing that Charlie Brown and his sister Sally are late for their own family dinner, Charlie Brown makes a phone call to his grandmother. She kindly invites all of his friends to join the Browns for the holiday meal. On the way over, the group enjoys singing the traditional song "Over the River and Through the Wood." However, Charlie Brown humorously notes a problem with the song, pointing out that his grandmother actually lives in a condominium, not a house, adding a light and amusing touch to the story.
Later, Snoopy and Woodstock retreat to Snoopy's doghouse to cook their own version of a Thanksgiving feast. They share a fun moment breaking the wishbone, with Woodstock lucking out and getting the larger piece. As the story concludes, during the end credits, Snoopy and Woodstock are shown enjoying pumpkin pie together, highlighting their simple, joyful celebration of the holiday.
Throughout this story, themes of friendship, gratitude, and the importance of family and tradition are woven into a charming and heartwarming narrative, emphasizing that even humble meals and imperfect traditions can create meaningful memories.