The film opens with Ebenezer Scrooge signing for the burial of his partner Jacob Marley on Christmas

Eve. Seven years later, in 1836, in London, Scrooge, a bitter and miserly old moneylender at a counting house simply called Scrooge & Marley, holds everything that embodies the joys and spirit of Christmas in contempt, scaring off any nearby carol singers, refusing to visit his cheerful nephew Fred's Christmas dinner party with his family, refusing to donate to charity, and forcing his underpaid employee Bob Cratchit to beg to take the day off for his own family. That night, Scrooge is visited by the ghost of his former business partner, Jacob Marley, who is now forced to spend his afterlife carrying heavy chains forged from his own greedy ways. Marley warns Scrooge that he will suffer an even worse fate if he doesn't repent, and foretells that he will be haunted by three spirits that will help guide him. As Marley disappears, one of his chains gets caught on Scrooge's chair and drags the chair, as well as Scrooge himself towards, the window. Scrooge is then horrified to see thousands of Spirits outside who, like Marley, were all green misty ghosts bound in chains. Startled, Scrooge scurries off to bed. The first spirit, the Ghost of Christmas Past, shows Scrooge visions of his own past that take place on or around the Christmas season, reminding him of how he ended up the avaricious man he is now. He had spent much of his childhood neglected by his father over the holidays at boarding school until he was finally brought home by his loving sisterFan, who died prematurely after giving birth to his nephew, Fred. Scrooge later worked at Fezziwigs warehouse, where he began a successful career in business and moneylending and became engaged to a woman named Belle, whom he met during one of Fezziwig's christmas parties, though she later called off the engagement when he began to grow obsessed with accumulating his own wealth. Unable to bear having to witness these events again, Scrooge extinguishes the spirit. The second spirit, the Ghost of Christmas Present, shows Scrooge the happiness of his fellow men on Christmas Day while Hark the Herald Angels Sing is playing in the background. Among them are his nephew, Fred, who playfully makes jokes with his family at Scrooge's expense, and Bob Cratchit and his family, who are just barely able to make do with what little pay Scrooge gives Cratchit. The Cratchits also tend to a sickly young son, Tiny Tim, whose commitment to the spirit of Christmas touches Scrooge, who is dismayed to learn from the spirit that he may not have much longer to live. The spirit warns Scrooge about the evils of Ignorance and Want, which manifest themselves before Scrooge as snarling, wretched, beastly children. The ghost laughs heartily and disintegrates into a skeleton as it vanishes. The third and final spirit, the Ghost of Christmas Yet to Come, shows Scrooge the final consequences of his greed and even toys with him a few times. Scrooge sees in this future that he has recently died, though there is more comfort than grief in the wake of his death, the men attending his funeral are only going for a free lunch. In addition, Fred is glad to be inheriting his wealth, and Scrooge is even robbed by his former maid Mrs Dibler, even stripping the clothes he was buried in. Tiny Tim is also shown to have died, leaving Bob Cratchit and his family to mourn him on Christmas. Unwilling to let this grim future come to pass, Scrooge begs to be given a second chance as the spirit forces him into his deep and empty grave to fall into his coffin, which sits atop the fires of Hell.

Scrooge awakens to find himself in his bed on Christmas morning, the three spirits having guided him over the course of one night, and immediately sets out to atone for his sins, making donations to the poor, joining in with the carol singers singing Joy to the World, attending Fred's dinner party, and giving Cratchit a raise to care for his family, allowing Tiny Tim to live. Scrooge spends the remainder of his life a new man embodying the spirit of Christmas itself.