Fat Albert and his friends fight to save their junkyard clubhouse from demolition while also working on a Christmas pageant.

After a night filled with more tricking than treating, Rudy and his friend Devery plan one last prank for spooky Mrs. Bakewell. But when two of the kids disappear into the old widow's house, Fat Albert and the crew set out to find their missing friends.

Fat Albert and the gang lends a helping hand out to their old friend, Mudfoot, but Rudy decides to play a little joke on the gang which goes haywire when Mudfoot get hurt and is sent to the hospital. This incident puts Rudy in a horrible situation with the gang.