The Naked Brothers Band and another band, the L.A. Surfers, find themselves competing in a "Battle of the Bands" charity event benefiting Little Kids Rock. Rosalina starts to fall for the L.A. Surfers' lead singer, Bobby Love. It annoys Nat that Rosalina hangs out with the opponent's lead singer. It turns out that Bobby is just dating Rosalina to get to Nat and is lying about everything, i.e, his British accent, not writing his own songs, etc. Nat and Bobby fight and declare at a press conference that the charity event is now a competition and the losing band's proceeds from their next CD goes to the charity.

The band's next concert stop is in New Orleans where Nat reunites with a childhood friend, sending Rosalina into a jealous frenzy! Meanwhile, Alex initiates an extreme environmental movement to help save polar bears at the North Pole, but devious reporters frame him to appear as a conceited rock star who hates Santa!

Amelia Lewis is super excited when she buys an available storefront, planning to open a year-round Christmas shop. But her celebration comes to a screeching halt when she discovers that Vic Manning has also bid on the property. After continually bickering and trying to one-up each other, the two combatants learn to work together and even get the merchants on Main Street to put aside their differences for the greater good.

After making it to the top of the charts, members of the Silver Boulders, a popular tween rock band, find themselves undermined by internal squabbling as the bandmates seek different creative directions.