The Gremlins performed the movie's theme tune (The Gremlin Rag) while dressed in winter clothes (Hats, mittens, etc.) on Mrs. Deagle's doorstep. They seemed to serve as a distraction while another Gremlin sabotaged her stairlift. Thinking the Gremlins where only normal carolers, Mrs. Deagle burst out of her house, ready to douse the trespassers with a pitcher of water. However, one look at the Gremlins sends her screaming back into her house. After locking the door and fighting off cardiac arrest (thinking the Gremlins were Demons that had come for her), she attempted to use her stairlift to get away. Unfortunately for her, a Gremlin had made some modifications to it, causing it to rocket up the stairway with the terrified Mrs. Deagle still in it. Her unexpected flight ends with her being catapulted out of an upstairs window, landing in the street below and dying on the spot. The Gremlins have a hearty laugh over her demise.
It appears as though the Gremlins have some sort of grudge against Mrs. Deagle considering Stripe personally seeks her out but she was never a well liked lady before the coming of the gremlins, and gremlins tend to be fairly indiscriminate about who they terrorize anyway. Later in this movie, they, along with most of the other gremlins (except Stripe) were completely destroyed in the fire and explosion at the Kingston Falls Movie Theatre because of Billy, Kate and Gizmo.
- This scene might have shown that Gremlins might be able to read, as the carolers are shown glancing down at their individual lyric sheets a few times.
- The gremlin with the blue hat may be Stripe.
- In a deleted scene stripe watches several human carolers singing which he seems to like, after a few seconds he disappears under the snow, this may have been the inspiraton for the caroling gremlins seen a bit later on.