- It's Christmas Eve.
- Dad's at a convention and Mom is home alone.
- At the bank, Mrs. Deagle is in the holiday spirit, evicting tenants and looking for Barney the mutt, presumably to eat for Christmas dinner.
- In Billy's bedroom, the gooey mogwai cocoons are hatching.
- They're not butterflies. They're gremlins.
- Back at school, kids are dismissed for the holidays.
- Alone in the lab, Mr. Hanson checks on the gremlins egg, which has hatched.
- But where's the gremlin?
- Mr. Hanson hunts for the gremlin, using a Snickers as bait.
- He finds it under his desk and sticks the candy bar underneath to lure him out.
- "You're not still mad about that blood test?" he asks.
- Hungry? Why wait? The gremlin eats the Snickers and Mr. Hanson's hand.
- Billy goes into the classroom and finds Mr. Hanson dead on the floor.
- Adding insult to injury, the gremlin stuck a needle in his butt. He's still mad about that blood test.