Timon and Pumbaa's Christmas is the thirty-eight episode of The Lion Guard and the twelfth episode of Season 2. It aired on December 8th 2017 as part of ABC's 25 Days of Christmas, and is considered to be a special episode. 
The episode starts with Rafiki explaining Kupatana to Makini in his tree, telling her that she will need to know all of the Pride Lands' celebrations as part of her Royal Mjuzi status. When Makini enquires to a painting of Timon placing a star fruit on a huge tree, Rafiki explains that he is decorating a Christmas tree. When Makini shows interest in learning all about Christmas, Rafiki starts to tell her the story of how Timon and Pumbaa first introduced the Pride Landers to the holiday, beginning with a large star the day before and the day of Christmas, that shines all through the day and all through the night.
In the Pride Lands, Timon, Pumbaa and Bunga adorn a tree with gourds. Timon starts to sing Jungle Smells, but Pumbaa and Timon disagree on how the song lyrics were supposed to be. With the tree nearing completion, Timon turns to Bunga for a star fruit. Once he hands it over, Timon takes it to the top of the tree and snaps it in half, placing one half on the side. But after he places it on the top, the branch breaks, and Timon is sent hurtling towards the ground. Bunga tries to catch him, but fails. Luckily, the rest of the Lion Guard arrive having heard his cry, and Beshte is able to save the meerkat from the fall.
The Guard enquire as to what they are doing with the tree, and Bunga points to the star, telling them that it's Christmas. Timon and Pumbaa are shocked when the Guard ask what Christmas is, and Bunga erroneously tells them that it's a holiday his uncles made up. They correct him, with Pumbaa explaining how they heard about it. Before Ono can point out a logical error in their explanation, Timon interrupts, informing them of how you receive presents at Christmas. Pumbaa, however, states that it's more of a time to be with friends and family. After the two argue a little over what Christmas is ultimately about, Bunga also mentions Dandy Claws, a character who appears to give presents. This leads Bunga to sing about Christmas in the Pride Lands.
However, at the end of the performance, Timon breaks down and admits that Dandy Claws will never visit, and Pumbaa explains how he will only come if you perform a special song known as The Twelve Ways of Christmas under the Christmas tree on Christmas morning. And on top of that, everything from the song must also be present. Timon continues to cry, and despite their attempts to cheer him up, Pumbaa and Bunga are unable to do so. Kion then leads the Guard away for one final patrol before Christmas.
Beshte notices that Bunga is upset, and Bunga tells them how he wishes he could make Dandy Claws appear to make Timon and Pumbaa's Christmas truly special. Kion suggests that maybe they can, and reminding his friends that the Lion Guard can make the impossible possible, persuades them to agree. After asking Bunga for the list, he becomes excited and runs through it so quickly that even Fuli asks him to slow down. After listing everything to the Guard, Kion is certain they can do it if they split up. After Bunga reminds them not to ruin the surprise for Timon and Pumbaa, they part ways.
Beshte speaks with Ma Tembo, to see if he can get her on board. Although she is hesitant, Mtoto pleads with her to let them take part, especially since it involves a performance. After a bit, she agrees. Kion speaks to his family about performing and even requests that his sister gets her friends Zuri and Tiifu involved, though Simba is hesitant. After both Kiara and Nala do a bit of persuading, he eventually agrees, if only because he feels that he owes it to Timon and Pumbaa for all they have done for him throughout the years.
Bunga gathers some grubs, and is about to eat one before Ono swoops in to stop him. When they hear Pumbaa approaching, Bunga tries to hide the bugs by stuffing them in Ono's beak. When Pumbaa approaches, both sides act casual, assuring the other that they're not doing anything special. Bunga tells his uncle that they have Lion Guard stuff to do and Pumbaa leaves, aiming for some white flowers. But Ono, having had the bugs in his beak for so long, swallows them by mistake.
Fuli meanwhile is trying to gather berries, but with no luck. She hears a call from the tree above her, and Uroho makes his presence known, also revealing Mwizi and Mwevi. Fuli is quick to remember the Traveling Baboon Show, and the trio start to help gather berries for her. Fuli expresses her gratitude and, when Uroho asks what they're for, she explains that it's a performance for a friend. Remembering that the show requires baboons, she asks if they'd be interested, and Uroho asks to hear more.
That night under the Christmas tree at Hakuna Matata Falls, Simba, Nala, Kiara, Tiifu and Zuri arrive, with Kiara complimenting the tree. Kion arrives to guide them to the rehearsals in a nearby canyon, where they see a large assortment of animals about to practise. After hushing an eager Mtoto so that they don't wake his uncles, Bunga overhears Simba ask what to do, but stutters after answering him abruptly. With none of the animals even remembering Dandy Claws to begin with, Ono states that it's going to be a long night.
Sunrise comes, and whilst Kion is impressed, Bunga believes that they need more time. Ma Tembo has her doubts given how long they have been trying and Simba agrees, and begins to leave. When Simba's pride start to leave, the other animals follow. Bunga is crestfallen, but Kion calls for the animals to stop. Simba returns, asking what is so important about Christmas. Bunga explains that he just wants to make his uncles happy as his way of saying "thank you" for all the things they have done for him, and Simba accepts this as a good answer, calling for everyone to try again.
A bit later, Bunga excitedly wakes his uncles up at the base of Hakuna Matata Falls. However, Timon at first refuses to get up, deciding to sleep in to avoid disappointment. Bunga angrily grasps his uncle to wake him, and forces Timon to follow him to the Christmas tree, where the rest of the Lion Guard are waiting for him. When he questions what's going on, Bunga tells him that it's the year they'll finally get to meet Dandy Claws, and they start to sing and perform The Twelve Ways of Christmas.
After the performance, both Timon and Pumbaa break down in tears. Despite Bunga's fears, they announce that they're crying out of joy. Timon thanks everyone for making his vision come true, but Bunga is upset that Dandy Claws never came. Suddenly, Pumbaa re-appears donning a white beard made of flowers, some leaves and a fruit hat. Pumbaa explains that he knew how much Timon wanted him to appear, so he would portray him that year. But unfortunately, he took so long to put the costume together that he forgot to get Timon and presents.
Timon, moved by Pumbaa's efforts, as well as the efforts of his friends, tells Pumbaa that it doesn't matter, since not only did he make Dandy Claws appear, he reminds him that they already received gifts from the performance, such as the berries and bugs, but on top of that, Timon is overjoyed to be surrounded by so many friends, which he declares to be the best gift of all. They conclude that it's the best Christmas ever, and Bunga thanks his friends for helping him. The Guard then decide that they should celebrate Christmas every year, before everyone cries out Merry Christmas.
As Rafiki finishes the tale of the first Christmas in the Pride Lands, Makini tells her mentor that she has come to the conclusion that Christmas celebrates the gift of the Circle of Life, to which Rafiki agrees. He taps on the painting and the star in the painting of the sky above starts to twinkle.