Willie Soke and Marcus are seasoned criminals who masquerade as Santa Claus every holiday season at various shopping malls, using this disguise as a cover to disable security systems, rob the safes, and make a quick getaway on Christmas Eve. This year, they find themselves at a mall in Phoenix, Arizona where, unfortunately for Marcus, Willie’s alcoholism and sex addiction are making him increasingly unreliable in his role. Once at the mall, Willie's harsh comments draw the ire of the uptight mall manager, Bob Chipeska, who escalates the issue to security chief Gin Slagel.
While indulging in his vices at a bar, Willie begins a heated romantic relationship with a bartender named Sue, who has a peculiar Santa fetish. During his shift as Santa, Willie encounters Thurman, a sweet but oblivious boy who mistakenly believes Willie is the real Santa. Thurman's innocence shines through as he becomes a target for ridicule from a gang of skateboarders. When Willie finds himself in a parking lot altercation with an aggressive man, it’s Thurman who bravely intervenes, believing he is aiding Santa.
Later, Willie gives Thurman a ride home, all the while fielding the boy's incessant questions. Arriving at the boy's wealthy home, Willie learns from Thurman that his mother has passed away and that his father is "exploring mountains"—a euphemism for being incarcerated due to embezzlement. Unbeknownst to Thurman, Willie uses the opportunity to rob his father's safe, taking a BMW. Meanwhile, Bob discovers Willie engaged in an explicit act in the mall's dressing room, leading to a warning to Gin Slagel about Willie’s antics.
When Willie returns to his motel only to find it ransacked, he questions a nearby prostitute who hints at police involvement. Taking advantage of Thurman's naivety, Willie moves in with him, causing Marcus to confront him about exploiting the child and his reckless lifestyle. Despite his better judgment, Willie becomes increasingly protective of Thurman, especially after the boy suffers at the hands of bullies.
One pivotal moment occurs when Willie encourages Thurman to defend himself, showing a softer side as he becomes attached to the boy. However, their bond is tested when Marcus and his wife Lois reveal their dark intentions. As the situation escalates, Marcus contemplates killing Willie to take the loot for themselves, and the tension culminates during their heist at the mall as the police arrive, turning their carefully laid plans into chaos.
In a frantic escape, Willie manages to grab a pink stuffed elephant meant for Thurman just before he is shot in a dramatic chase. The story reaches a resolution with a heartfelt letter from Willie to Thurman, expressing hope and outlining his plans to rehabilitate himself as a police sensitivity counselor. With the villains caught, Sue steps up to care for Thurman, ensuring a semblance of stability for the boy who navigated a turbulent holiday season.
