Edgar Underwood, a sleazy small-town mortician, loses his cool when his timid new assistant, Lane Lipschitz, discovers the corpse of Mort Lancaster has gone missing minutes before his funeral. Edgar convinces Lane to distract the Lancaster family in the funeral home lobby while he looks for the body.
Lane struggles to keep the overbearing Mrs. Lancaster and her brutish son, Stuart, at bay. Edgar finds the now-zombified Mort lurking in the funeral home basement and fights him with whatever weapon-like Christmas decorations are in arms reach. Edgar traps Mort but comes face-to-face with the recently zombified funeral home minister, Pastor Tim.
The Lancasters force their way into the funeral chapel despite Lane's lame attempts to lie. Mrs. Lancaster discovers that her husband's body is missing just as Edgar bursts through the chapel doors, pursued by Pastor Tim. Chaos erupts as Edgar wrestles Pastor Tim for his life. Mort shambles in and finally reunites with Mrs. Lancaster in one final, bloody embrace. Lane overcomes his fears and saves Edgar from Pastor Tim with a mind-blowing finish.