After Hal is mistaken by his new boss, as that guy's boss, Hal plays along. Malcolm is in a three-legged scavenger hunt with the girl he likes, but becomes upset after he confesses he likes her, and she says she likes another boy. Reese is also the the scavenger hunt, and at first doesn't like the big dumb bully he is with, but they grow to like each other when they bond over beating up the other contestants and stealing their items. Lois continues to balance keeping Dewey intact and dealing with the crazy woman, but now must talk to the husband as well. Francis continues to sabotage his own team, this time on the ice.
Juicy guest casting and ingenious plotting enliven an hourlong episode that airs in the plum post-Super Bowl slot. One storyline unfolds at Hal's company picnic, where Lois clashes with a blabby wife and her beleaguered spouse; and Hal runs afoul of his new boss and the big cheese. In Alaska, Francis's scheme to win a bet involves rigging a hockey game that pits loggers vs. a fearsome women's squad led by a blowhard coach.
When Malcolm and his brothers destroy their Christmas tree ornaments, Lois punishes them by canceling Christmas and moves all the presents into the garage. The only way she will reinstate the holiday is if the boys behave impeccably up to Christmas morning. Her plan works better than expected, and Lois is touched that her family responded so well to her challenge. Meanwhile, the boys decide that Lois could use this tactic for future holidays and retaliate by breaking into the garage and opening up all the presents. Elsewhere, Francis is forced to visit his Grandma Ida for Christmas.
When Hal's doctor discovers something suspicious during his routine check-up, Lois and Hal become frantic, nervous wrecks as they wait for the test results. As a result of her anticipation, Lois becomes even stricter with the boys, leaving them to misinterpret the new house rules. Meanwhile, in Alaska, Francis comes to blows with his boss.
In an effort to contribute to society and to make her boys useful at the same time, Lois "volunteers" Malcolm, Reese and Dewey for charity work at a local church. The boys are assigned to sort giant piles of donated clothing, game, appliances etc. Initially irritated at their new task, they realize the donated stuff is a lot nicer than their own possessions, and they begin swapping out their old stuff with the second-hand items. The boys soon make a enterprise out of their charity assistance, going as far as to sell things to the neighborhood kids - that is until Hal finds out. Meanwhile, Francis must come to grips with the fact his fabulous job in Alaska is not quite what he expected.
Francis has to stay a couple of days in a small county jail and enjoys it more then he expected. Malcolm finds himself with a girlfriend, which add to his usual social anxiety. Dewey makes friend with a new kid in the area, helping the kid's mother to compose Dewey's dream birthday party for his new friend.
Lois, in an attempt to get a break from the family, joins a book club that turns out to be a night off for frustrated housewives, but it all goes a little bit haywire. Meanwhile Francis tries to get to Alaska, learning something important about himself and about truck drivers. Hal, who tries to keep the boys out of troubles for the evening, is caught in an inner conflict about how to treat them.
The family takes a vacation with the Kenarbans, sharing a houseboat. And while Steve's parents are caught in a fight, Reese and Steve socialize with some cheerleader from a nearby spirit camp, Malcolm is stuck with Hal fishing. At the military academy, Eric turns eighteen and leaves for Alaska, inspiring Francis to do something about his situation too.