Johnny Elaine and Perch Perkins announces on the news that a sled race is occurring in Bikini Bottom with the prize being one million dollars and that all of Bikini Bottom has entered. Patrick says that he hopes he wins but only has gummy worms that lead his sled. Mr. Krabs, Plankton, Squidward, SpongeBob, and Sandy also prepare for the race. However, Plankton sneaks off to the Krusty Krab just before the race begins and uses a robot as his replacement in the race. Patrick soon catches up to SpongeBob and he agrees to let Patrick come along, much to Gary's dismay. Meanwhile, at the Krusty Krab, Plankton has trouble opening the safe of the Secret Formula.
Back in the race, Sandy's sled crashes and Squidward's worm stops racing. Squidward gets angry and goes on foot, only to fall through the ice and freeze. He is soon discovered by SpongeBob and Patrick, who take him along with them. Shortly after, they find Sandy in a pile of snow and they bring her along too. Mr. Krabs' worms become hungry, and they get mad and chase Mr. Krabs. SpongeBob lets Mr. Krabs come along as well. The worms chase SpongeBob and the gang, and Gary has trouble pulling all of them. They are cornered at a dead end and Gary roars like a lion to scare the worms away.
The gang decides to stop there and make a fire. Squidward thaws, just before encountering The Abominable Snow Mollusk who tries to attack the group. Squidward runs away and jumps into a cold body of water which freezes him again. The group (minus Squidward) continue the race and realize that they forgot Squidward soon after. They go after him and save him from the Snow Mollusk with the help of Patrick's last gummy worm. They continue on and Sandy realizes that Mr. Krabs has betrayed the group and gone off on his own so that he could win the prize himself, but got stung by a jellyfish that went into his mouth in the process.
Patrick then points out that he "saw something shiny" and SpongeBob notices that it is Karen. They also discover robot Plankton who is buried in the snow and Karen explains that the whole race was a plot for him to steal the Krabby Patty secret formula from the Krusty Krab undetected. SpongeBob and the group go southwest to find Mr. Krabs. Gary is unable to go any further.
Back at the Krusty Krab, the real Plankton fails to break open the Secret Formula safe yet again. Frustrated, Plankton proceeds to rip an "atom" in half which causes a nuclear explosion, destroying the Krusty Krab and opening the safe. Meanwhile, SpongeBob pulls the sled until they find a frozen Mr, Krabs, whom they inform about what Plankton is doing. All of them, except Sandy, freeze. Sandy saves their lives by starting a fire with parts from the sled. Sandy figures out how to use the members of the group as a substitute sled. They return to Bikini Bottom to see that the Krusty Krab has been destroyed and Plankton has stolen the formula. However, he cannot get the bottle open. The group finds Plankton trying to open it. An angered Karen zaps Plankton. When Plankton expresses his frustration at not being able to open the bottle, Patrick opens the bottle, allowing Plankton to finally take the formula out.
Plankton then pretends to surrender and uses a pen to fly away out of the Chum Bucket. The group chases Plankton into a net trap that Plankton trapped them in. However, the Snow Mollusk returns, frees the group, and eats Patrick's Jelly Beans, then hugs the little pink sea star. Plankton escapes but the Snow Mollusk mistakes him for a jelly bean and eats him, returning the formula to Mr. Krabs with Karen showing no sympathy for Plankton. The episode ends as Plankton waits to be digested.