Exasperated from bratty, ungrateful and self-centered kids, Santa's elves decide to go on strike, and the elves' demands on Santa become rather unreasonable. In desperation, Santa brings six mischievous teens from the mall to help. After several unsuccessful attempts to escape, including stealing Santa's sleigh, Santa sends the teens to watch "naughty/nice" videos where they have to vote on kids' behavior. All seems fun to the teens until they see videos of their own behavior and have to vote themselves naughty. One teen, upset and thinking his behavior as nice, kidnaps a sleeping elf as a last chance effort to force Santa into sending him home.

Hundreds of years ago in Lapland, a little boy named Nikolas loses his family in an accident. The villagers decide to look after the orphaned boy together. Once a year - at Christmas - Nikolas moves to a new home. To show his gratitude, Nikolas decides to make toys for the children of the families as good-bye presents. Over the years, Nikolas's former adoptive families become many, and soon almost every house has presents on its doorstep on Christmas morning. At thirteen, Nikolas is sent to live and work with Iisakki, a grumpy old carpenter, who forbids Nikolas to continue making presents for Christmas. Gradually, however, Nikolas wins Iisakki's trust. Together they begin to look after the Christmas traditional that Nikolas has begun. When the aged Iisakki has to leave Nikolas and move away, the tradition of Christmas presents is once again at risk. Thankfully, Nikolas comes up with a solution that brings children joy every Christmas, even continuing to today.

Santa Claus is actually a demon who lost a bet with an Angel, so he becomes the giver of toys and happiness. But when the bet is off, he returns to his evil ways.