The episode was produced in stop motion animation at Screen Novelties, and was directed by Mark Caballero and Seamus Walsh, two of the founders of the company.

At the restaurant, the Cheeks family performs a Christmas carol to the applause of customers and Sandy informs everyone that there will be a surprise at her treedome later that night.

She demonstrates her work by dropping a sample in a Christmas tree, causing it to grow rapidly, while her family performs their circus act in the treedome.

Rowdy and Rosie Cheeks, in their ploy to bring a surprise to Santa Claus, pour more of Sandy's experiment into the tree causing it to grow a considerable amount.

At New York Comic Con in October 2024, it was announced that a new SpongeBob SquarePants stop-motion special episode, "Sandy's Country Christmas", would premiere on Nickelodeon and Paramount+ in December of that year.

[3] Screen Novelties co-directors Mark Caballero and Seamus Walsh commented enjoying working with executive producers Vincent Waller and Marc Ceccarelli and the rest of the SpongeBob production team.

Caballero described the show's staff as being receptive to their "dumb ideas" and Ceccarelli praised the guest animation studio's "willingness to throw in any technique to get the right shot.

[6][7] Waller and Ceccarelli gave Screen Novelties the freedom to change up certain scenes from the boards to better suit stop-motion animation and the story.

[5] For the episode, Screen Novelties built a SpongeBob dummy out of a cardboard box and destroyed it with sparklers in the studio's parking lot.

[9] Joel Keller of Decider commented that he enjoyed SpongeBob in stop-motion more than in its traditional 2D format, as it felt less frenetic and more cozy.