It is Christmas Eve and the Silberhaus children are excited for the festivities to begin. Marie and Fritz are playing in the children's room when their godfather Drosselmayer arrives and presents them with an early Christmas gift, a Nutcracker. Marie witnesses a great battle between a vast army of toy soldiers led by the Nutcracker against a terrible platoon of mice commanded by the Mouse King. Follow Marie and Fritz's journey in the Kingdom of Dolls, through the Christmas Forest, past the Almond Milk Sea, and the Palace of the Marzipans.

Christmas has been crushed by the mean-spirited D. D. Kovet, who owns almost the whole tiny town of Ironsville. But when a mysterious peasant girl and her beautiful wolf companion come to town, it's up to her to spark meaning and spirit in the hearts of townsfolk again. She begins to sell holly, despite the law against it, and soon the whole town is enchanted by her and by the long-forgotten Christmas spirit. Will Kovet's scheme to stop the celebration succeed in banishing the girl from Ironsville? Or will the spirit of the season prevail?

David and Rick decide to earn some extra cash to buy Christmas presents by opening up a Christmas tree lot, but soon discover that being a small-time entrepreneurs is a lot more involved than they had realized.

Grandpa Mark tells the story behind "Mary Did You Know?" and sings for this modern Christmas classic.

It's Christmas Day at the Nelson's, a joyous occasion marked by one glitch - the catcher's mitt Ozzie ordered for Rick never arrived. That evening, Ozzie and Rick drive to another family named Nelson thinking that the package might have been delivered by mistake. The package isn't there, either, but Ozzie and his son are struck by how the family, a single mom and three young children, and received so little at Christmas compared to their own relative prosperity. Ozzie organizes the neighbors, and with David playing Santa Claus, treat the other Nelson family to a second Christmas Eve. Later that evening, a package holding Rick's catcher's mitt mysteriously reappears under the Christmas tree.

Feeling nostalgic on the day after Christmas, Ozzie is determined to take the family ice skating up at the lake.

The boys want to earn extra money for Christmas, so Ozzie gives them permission to look for work.

Ozzie volunteers for so many Christmas committees that he has little time to do his Christmas shopping, hang the Christmas lights or buy a Christmas tree.

Toys in a toy store come to life at night, and perform in a toy parade before the Doll Princess, all of which leads to the "Screen Song" sing-a-long, "Oh, You Beautiful Doll".

A young grizzly bear, undaunted by his mother's warnings of the coming winter, runs away from home only to be confronted by Old Man Winter himself.

Vickie tries to find a suitable outlet for Mr. Finley, Sr.'s energy, so she enlists the help of her friend Dolly to get him a job in the local department store as one of Santa's helpers. Her plan backfires when Mr. Finley - as Santa - starts to give out free toys to all the children who meet with him, with the skinflint toy department manager on the hook for the unwitting expenditure.

Santa and his sleigh crash into some trees while attempting to deliver presents on a foggy Christmas Eve. Rudolph is enlisted to lead the sleigh and is hailed as a hero.

A sad little burro who feels that no one wants him and that he doesn't belong anywhere finds out differently when he is bought by Joseph to transport Mary on their travel to Jerusalem for the birth of Jesus.

A little shepherd boy newly arrived in Heaven tries to adjust to life in the Hereafter.

Based on L. Frank Baum's Christmas tales, Christmas Castle tells the story of when Santa was kidnapped but a group of creatures, determined to cancel Christmas, and Santa's loyal magical creatures have to save Santa and Christmas before the night is over.