Merry Madagascar

Alex, Marty, Melman, and Gloria try to escape Madagascar in a hot air balloon to celebrate Christmas back home. Their plan is interrupted when the lemurs accidentally mistake them for the 'Marauding Red Night Goblin' and attack, showering the island with coals. Alex shoots the Goblin, realizing it was Santa Claus throwing lumps of coal at King Julien.

The crash causes Santa to lose his memory and forget his responsibilities as a gift-bringer. The group resolves to help him remember by delivering the presents themselves, using Santa's magic dust to fly the sleigh since his reindeer refuse to obey anyone else.

The animals' initial efforts to make Christmas deliveries are unsuccessful, leading them to dump the gifts at nearby post offices for safety. Despite this, they find joy in bringing some happiness by accidentally crashing into an apartment and delivering gifts to a little girl.

Back on Madagascar, the lemurs celebrate Julianuary by exchanging gifts, with King Julien expecting to be the center of attention. Santa regains his ability to make toys and crafts gifts for the lemurs, but Julien becomes jealous and claims the gifts for himself.

Julien feels down after claiming the gifts, but Santa's suggestion to give a special gift lifts his spirits. This act restores some of Julien’s happiness and emphasizes the spirit of giving during Christmas.

With only enough magic dust for one last trip, the animals decide to return to Madagascar to help Santa regain his memory. They run out of dust and inadvertently crash into him, helping him remember his true identity as Santa Claus.

Santa thanks the animals for their help and takes King Julien off the naughty list. However, since they forgot a gift for Liechtenstein, Santa switches to a reserve tank of magic dust for the final trip, leaving the animals behind.

The animals decide to enjoy their Christmas together in Madagascar, embracing the spirit of the holiday despite earlier plans to return home. They find joy in their unconventional celebration and the bonds they’ve rekindled.

King Julien throws a coconut at Alex to get back on the naughty list, causing a lump on Alex's head and inadvertently giving him amnesia, similar to what Santa experienced earlier. This act shifts the focus from goodwill to mischief again.

Santa Claus flies away after delivering gifts and helping the animals, leaving them with a newfound appreciation for Christmas and the importance of kindness. The animals are content celebrating in their own unique way and look forward to future holidays.