Luther 'Hobbo' Hobdyke, a retired milkman with strong links to MI5, arrives in the village. Very soon, calling upon his experiences on numerous dangerous missions overseas as a master spy, he forms a small team of reluctant volunteers, consisting of Alvin and Entwistle, ready to react to any emergency in the village. Finding that Hobbo has moved in next door, Clegg and Truly recall that he was never much of a milkman, but have to admit that his needlework is always exemplary.
Alvin has Truly and Norman over for a Holiday dinner. Glenda invited a man to dinner that Barry does not like. Pearl and Marina each give Howard a sweater vest, so he wears them both... at the same time. Auntie Wainwright gives Tom and Smiler a dinner that is actually nice, and then empties their pockets in a card game.
Norman has been roped into performing a humorous monologue for the Christmas Concert. Pearl plans to force Howard to mime a recording of Nelson Eddy. Glenda plans to force Barry to perform as a magician. Billy wants to give an archery demonstration. Alvin is practicing as a one-man-band. Entwistle hypnotizes Smiler into knowing how to dance.
When Nora Batty books Billy Ingleton's organ for a charity fair, she badly underestimates how much of an attraction it will be... Marina declines to go out with Howard because she's caught the showbiz bug, and is rehearsing a play at the local church. Howard asks the trio to help him think of something "showbizzy" they can do together.
Compo is selected to travel to France with a group of local WWII veterans, only to have the offer withdrawn when the organisers realize how scruffy he looks. The local ladies take pity on him and collect enough money for him to go, and Truly and Clegg join him for the trip. Meanwhile, Edie's long-estranged sister Ros shows up in town, ready to make amends with Edie and possibly settle down again. Edie, angry at her for leaving her husband and devastating their mother, isn't interested in reconnecting. In France, the trio has two goals: to release Billy Hardcastle's homing pigeon and to revisit a spot Compo and some of his fellow soldiers camped overnight after a gruelling escape from the Germans. There's just one snag: Compo doesn't remember where it is.
A depressed Howard tries to build himself up but, under Foggy's instruction, ends up breaking his leg. Auntie Wainwright has Smiler testing a Triumph Motorcycle, after she rents him the riding gear. Foggy intends to sneak Marina past Pearl and into Norman's house so that Howard can come over to see her. Meanwhile, the ladies morning coffee group plan to give Howard a surprise visit that same evening to cheer him up during his recovery.
Wesley gets Foggy, Norman and Compo to help him move a Piano for Auntie Wainwright almost running into Billy Ingleton, who takes a shine to the instrument. Foggy wants credit as the concert promoter for Billy. Howard and Marina wear, what they think are, disguises. Eli conducts The Holme Band at the concert. Compo saves the show.
[Not part of the LotSW series, entry here is in error but removal will upset all numbering for those who use TMDB for Kodee or similar media players] in 'The Funny Side of Christmas' is a Christmas special broadcast by BBC1 on 27 December 1982. Presented by Frank Muir, it comprised one comedy sketch each from 10 contemporaneous English comedy series: Butterflies, The Fall and Rise of Reginald Perrin, Last of the Summer Wine, The Les Dawson Show, Only Fools and Horses, Open All Hours, Smith and Jones, Sorry!, Three of a Kind, and Yes Minister.