Meanwhile, in another part of the forest, a trio of raccoons (married couple Ralph and Melissa and their friend Bert) prepare their home, The Raccoondominium, for Christmas.
Nearby, local aardvark millionaire Cyril Sneer is revealed to be the tree thief hoping to make a profit out of the lumber.
While Tommy and Julie go out, leaving Schaeffer alone in the cabin, the Raccoons sneak inside and find the Raccoondominium decorated with ornaments, tinsel, and lights.
As Melissa tries to get their Christmas stockings back, Schaeffer wakes up from his nap and chases the Raccoons through the forest.
As Cyril and Cedric head out to cut down the rest of the trees in the forest, the Raccoons and Schaeffer catch the two Sneers.
Suddenly, Schaeffer, Julie and Tommy see outside the window the Raccoons settling in a newly re-planted tree nearby.