Santa Claus, his wife Anya, Patch and the other elves live happily together in the North Pole, until Patch leaves to make it on his own in New York. There he meets the ruthless and greedy toy manufacturer B.Z. who tricks him into helping him try to take over Christmas. Only Santa can save the day, and with the help of his reindeer and two children he has befriended, he leaves the North Pole to try and rescue Patch from disaster, and keep the Spirit of Christmas alive.