Adult Swim Yule Log 2: Branchin' Out

Following the events of the previous film, Zoe survived the yule log's attack, but Alex was killed. Police believe they were attacked by Pleatherface, disbelieving Zoe's story about the yule log being sentient or the other supernatural events that occurred. The yule log breaks out of the evidence locker, setting off an explosion that destroys Alex's video evidence.
Believing the log is after her, Zoe has a panic attack during a client meeting, and is fired from her job at the Coral Conservancy. Her friend Jakesy consoles her and pushes her to go on vacation and break out of her horror movie past into a cheery "Hallmark"-style romantic comedy. As they drive, Santa Claus observes them and uses his magic to stall their car in the small town of Mistletoe, where Zoe experiences shifts from the dreary horror movie setting into a lighter and more cheerful Christmas movie, complete with happy music and brighter cinematographic palette. A local mechanic tells them that it will take several days to fix the car and that the town is set to celebrate its annual Yule Log Festival.
Zoe is desperate to escape, and runs into obnoxious wealthy influencer Beauregard, before encountering recent widower, Birt. Birt and his mother Nana run Savannah's Christmas Ornaments, named after his deceased wife, along with his young son, Jaxon. Beauregard reveals himself to be the owner of a large rival ornament store that threatens to put Birt out of business. Zoe and Birt bond over the loss of their partners, whose cremated ashes they both have yet to scatter, and Zoe grows attracted to Birt, eventually opening up about the events of her trauma to him.
Believing her, Birt posits that the log may have been destroyed in the explosion and helps Zoe conquer her fear using an EMDR-type device. Zoe, now truly cheerful for the first time, immerses herself in the town, helping the store, and staying with Birt and his family. Birt recounts how Savannah developed a shrimp fudge recipe that he could never recreate following her death, but Zoe manages to find Savannah's complete recipe. She successfully recreates it with Jaxon. When some accidentally drips on a coral ornament, Jaxon notices that it causes the coral to grow.
Meanwhile, the yule log has indeed managed to find Zoe, but is intercepted and destroyed by Santa and Holly, who survived the first film. Unbeknownst to both of them, a splinter of the log survives and flies off, lodging itself into Nana's hand. Zoe sees visions of a tiny Nana inside the freezer and climbs in. Inside, tiny Nana tells Zoe that only love's remains will defeat the hate, as Zoe sees Alex and Savannah boxing together. On Christmas Day, the day of the festival, Birt's family gathers for dinner, but the celebration turns to horror as the yule log gruesomely emerges from within Nana's body, turning her into a log creature. Zoe experiences disorienting fluctuations as the movie's palette shifts between romance and horror.
The creature infects and ignites the town's yule logs, which massacre the citizens. Jaxon, believing Nana has merely gained superpowers, tries to help her, but it attacks him. Zoe and Birt fight the logs, which only regenerate. Remembering what Nana told her, Zoe and Birt confess their love and throw Alex and Savannah's ashes—love's remains—on the creature. Alex and Savannah's spirits destroy the creature.
Though the log has been defeated, Zoe still decides to leave town. Birt prepares to close the store, but fans of the massacre arrive, willing to pay handsomely for ornaments made by the now-infamous Nana. One month later, Birt has rebranded the store as an ornament, shrimp fudge, and yule log massacre museum to great success. Zoe returns, prepared to begin a life with Birt. Zoe's old boss arrives, offering to rehire her after learning that the fudge restores coral. As Birt and Zoe celebrate, Jaxon secretly applies the fudge to a twig left by the yule log, telling "Nana" that he'll bring her back. As the movie shifts back to the horror palette, the Little Man in the Fire, the Alien, cultists, and other horrors from the first film descend upon the happy occupants within the store.