Derek finds a strange elf doll while going through Christmas decorations with his younger brother Kyle. Possessed by the doll, Derek leads his brother into the kitchen's oven and locks him inside.
Chance hosts a party in an abandoned warehouse for her friends Clover, Cali, Dan, Tiffany, Randy, Leah, Monica, and John. Chance convinces everyone to add their names to a 'Naughty' list and write their deepest secrets on sheets of paper.
Cali coughs up a lump of coal before an elf doll mysteriously appears in her lap. Chance warns everyone that the game they are playing is real. Chance instructs the eight friends to do whatever the elf says in order to survive. Chance apologizes for cursing her friends and leaves.
Cali becomes possessed the following day. Cali runs over a man in the street, who turns out to be Jason Johnson, the driver that killed her little brother in a hit and run.
While bartending, Randy finds the elf doll with an instruction to drug a woman's drink. Randy spikes the drink after the woman's face morphs into an elf's and compels him to do so.
Randy brings the doll to Clover, Dan, and Monica to tell them what happened. The friends conclude the curse is real when they watch a news report about Cali's car incident. Everyone rushes to Tiffany's house when they see her name next on the list.
Tiffany overdoses on cocaine after her mother's face morphs into an elf's and instructs her to snort her entire stash. Clover and the others arrive in time to rescue Tiffany. Clover advises the other six friends that they have to take the curse seriously and discover how the elf doll is connected.
Sky conducts a séance with two friends over an elf doll. One of the girls becomes possessed and stabs herself in the neck. Sky beats the other girl to death and leaves with the doll.
Randy sees more people with elf faces while at the bar on his day off. Randy runs into his ex-boyfriend Colin outside. Becoming possessed, Randy suddenly stabs himself in the face.
Clover and Leah confront Chance to learn more about the curse. Chance reveals that the elf must watch you do whatever you wrote down in order for the curse to move to the next name on the list. After she sees Clover and Leah's faces morph, Chance shoots herself with a handgun.
Dan becomes cursed to beat his abusive father Trevor to death. The elf doll observes as an unseen presence strangles Dan to death with a string of Christmas lights.
An entity resembling Krampus murders Jason Johnson when his car stalls on a dark road.
Clover and Leah track down a woman named Clara, who has another elf doll. Clara tells the two women about how the three magi actually bore seven gifts corresponding to the seven deadly sins. Clara warns the women that they have to close a chest that acts as a doorway to another dimension in order to stop the curse of the seven elf dolls.
Sky interrupts a group therapy session at a community center to kill all four people in attendance.
Krampus kills Tiffany in her home. Krampus then kills John in the public library.
Sky kidnaps Clover and Leah at gunpoint to take them to the house with the chest Clara mentioned. A struggle ensues. Leah recovers the gun and shoots Sky.
Leah becomes possessed and shoots Clover. Clover recovers the gun and shoots Leah. Clover removes a Krampus doll from her pocket, revealing she was a curse conspirator all along.