The family goes to the town's annual Christmas fair at which Jill's father, Arthur, once again loses a competition to his neighbor rivals, the Hendersons.
Following the fair, the family sits down for dinner, and after various altercations between the adults, Ben wishes it was Christmas every day.
The whole family celebrates, except for Kevin, who is too saddened by the events from the day, and for Ben who had held out hope that his parents would get back together.
His anger at the circumstances of the day gets the better of him and he starts a fight at the Christmas Fair, deeply upsetting Ben and Jill with his selfish behavior.
Kevin finally embraces living Christmas over again, taking full responsibility for his faults and actions and allowing Todd to propose without interference, instead congratulating him.
He practices his dancing and helps Arthur win the Christmas fair competition; he re-designs the easy bake oven into a "monster melt" that greatly impresses everyone; and he sings a song during which Todd was meant to propose.
Jill is touched and the two kiss, and as Midnight strikes, Kevin finds the cycle broken: he no longer has to relive Christmas.