Charlie B. Barker and Itchy Ford are back with Sasha and the gang having a Dicken's of a time as they try to save Christmas from Carface and an evil spirit that wishes to use dogs all over the world to ruin Christmas forever.
Charlie and Itchy return to Earth to find Gabriel's Horn, but along the way meet up with a young boy named David, who ran away from home.
When a casino-owning dog named Charlie is murdered by his rival Carface, he finds himself in Heaven basically by default since all dogs go to heaven. However, since he wants to get back at his killer, he cons his way back to the living with the warning that doing that damns him to Hell. Once back, he teams with his old partner, Itchy, to prep his retaliation. He also stumbles onto an orphan girl who can talk to the animals, thus allowing him to get the inside info on the races to ensure his wins to finance his plans. However, all the while, he is still haunted by nightmares of what's waiting for him on the other side unless he can prove that he is worthy of Heaven again.
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