Set in the 1940s, the story unfolds in the quaint town of Hohman, Indiana, and centers on a young boy named Ralphie Parker. With the holiday season in full swing, Ralphie dreams of receiving the ultimate Christmas gift—an "Official Red Ryder, carbine action, two hundred shot range model air rifle." Despite the concern expressed by adults that he might shoot his eye out, Ralphie makes it his mission to subtly hint at his desire for the BB gun to his parents. The narrative follows his imaginative, yet determined, quest to ensure that the air rifle ends up under the Christmas tree.

Ralphie’s days leading up to Christmas are filled with typical childhood experiences that stand against the backdrop of his quest for the air rifle. From enduring schoolyard bullies to outsmarting his wily younger brother, Randy, and decoding secret messages after joining the Little Orphan Annie decoder pin campaign, Ralphie navigates the trials and joys of pre-adolescent life. Humorously, his attempts to persuade his parents, particularly his skeptical mother, are met with a variety of setbacks, which do little to dampen his hope. Alongside these efforts, the Parker family prepares for the holiday with their own quirks and traditions, painting a familiar and nostalgic picture of American Christmas festivities.