The plot focuses on a boxing match between Shane Ramsay (Peter O'Brien) and Mike Young (Guy Pearce), who are competing for the affections of Jane Harris (Annie Jones).
When Clive Gibbons (Geoff Paine), who is refereeing the fight, is briefly knocked out, he dreams of a Christmas fantasy land featuring his friends and neighbours.
The dream sequence sees the cast take on the roles of colourful pantomime characters, with Clive as Father Christmas.
Paul (Stefan Dennis) and Jim Robinson (Alan Dale) make a bet about the outcome of a boxing match between Shane Ramsay (Peter O'Brien) and Mike Young (Guy Pearce).
[3] He explained that as the show is "basically light and fun", the writers discussed what they could do to round out the year and took the opportunity to create a fantasy sequence.
He pointed out that unlike fellow soap Sons and Daughters, Neighbours had never featured cliffhangers and they wanted to stick to that "tradition".
"[3] Writers for TV Week later observed that from 1986 until 1990, Neighbours usually finished the season with "a happy ending and a good old-fashioned Christmas singalong".
[5] The dream sequence features the cast in "a Christmas fairyland" in which they take on the roles of colourful, "totally over the top" characters.
[2][3][4] East said the cast "had a ball" filming the scenes,[3] and Paine also had fond memories of making the episode, calling it "a wonderful, imaginative and creative time.
But despite Clive making "a rapid and undignified exit" from the fight, there is a happy ending as he dreams of a White Christmas with the residents from the street.
[2] When the episode aired in the UK in 1988, an Evening Post reporter included it in their "Soap Box" feature, and noted that "It's Yuletide Down Under which heralds the revival of the old Robinson/Ramsay feud".
[10] The Eastern Daily Press' Stacia Briggs also chose the episode as part of her "Memorable Christmas moments from the soaps" article.
[11] She wrote "From the sublime to the ridiculous, this was an example of Neighbours scriptwriters smashing down the fourth wall and presenting an episode that mimicked taking hallucinogenic drugs.
"[11] Michael Idato of The Sydney Morning Herald included the episode in his "10 strangest moments on Ramsay Street" feature.
[12] While reviewing the show's season finales, TV Week commented "Clive was knocked out in a boxing match and dreamed that Ramsay Street had turned into a Christmas panto.