Ariel and Eric have had a baby daughter, Melody, but the threat of reprisal from Ursula's sister Morgana means that they must keep the girl in the dark about her mermaid heritage. However, to be a mermaid is what Melody wants most and her dreams of the sea soon find her playing into the evil Morgana's hands. To set things right, Ariel must team up with her old chums Sebastian, Flounder and Scuttle and embark upon a daring rescue mission.

Updated version of the Dickens' classic with Bill Murray as Frank, a network TV president and modern day Scrooge who is always looking out for number one. One night, as Christmas approaches, he is visited by three zany ghosts including ex-New York Doll David Johansen as the Ghost of Christmas Past and Carol Kane as a violent Ghost of Christmas Present; whilst jazz great Miles Davis appears in a cameo role as a street musician.