Jack and Sally get together and go on a small trip with Zero. They go to visit the other holiday towns and have a fun time away from Halloween Town.
When Jack and Sally come back, they discover something horrifying. Dr. Finklestein and Oogie Boogie have killed Mr. and Mrs. Claus and destroyed Halloween Town. They have burnt it to the ground.
Jack and Sally punish Dr. Finklestein and Oogie Boogie by giving them what they deserve. They burn them alive and finally get rid of them. Now they can't ruin anything else and Halloween Town can finally be at peace.
The people helps rebuild the burning town. They start preparing for the next Halloween with Jack as the King and Sally as the Queen.
Jack holds a town meeting and discusses the new plans for this year's Halloween. Everyone is excited and glad that Halloween Town is back without Dr. Finklestein and Oogie Boogie.
They have the best Halloween that they've ever experienced. Jack, Sally, and Zero live happily ever after. They also get another dog so that Zero can have a friend.