The Gnome in Your Home is a doll that watches children to see if they're being naughty or nice near Christmas.
Homer and Marge bought Maggie a Gnome in Your Home to watch over her. After being told that it was supposed to watch over you all the time and tell Santa Claus what you've been doing, whether you've been bad or good. The Gnome doesn't need food or sleep and never shuts his eyes. Maggie became scared of the Gnome after hearing all of this. Homer then makes Maggie feel worse by telling her that if she's not good, the Gnome will nibble Maggie's fingers.
When Maggie was going to bed on Christmas Eve, she was hiding at the far end of her crib to get away from the Gnome. Homer, not realizing Maggie was scared, moved her crib closer to the Gnome. Maggie then has a nightmare about the Gnome talking to her. The Gnome tells Maggie that he has a tummy ache from eating too much before bedtime before spitting out a lot of finger tips. The Gnome then asks Maggie if she's been a bad baby and when she shakes her head, the Gnome tells her not to lie or Christmas morning will never come.
The Gnome then grows and chases Maggie through the North Pole, kicking a baby animal as he went past. Maggie then bumped into Santa Claus who told Maggie that with Jack Frost, The Abominable Snowman and Wayne Gretzky, they'll defeat the Gnome. But the Gnome had a gun and everyone ran off. Maggie then entered a cave which turned into the Gnome's head and ate her. Maggie then woke up to find it was Christmas...