Inside a snowflake exists the magical land of Whoville. In Whoville, live the Whos, an almost mutated sort of Munchkin-like people. All the Whos love Christmas, yet just outside of their beloved Whoville lives the Grinch. The Grinch is a nasty creature that hates Christmas, and plots to steal it away from the Whos, whom he equally abhors. Yet a small child, Cindy Lou Who, decides to try befriending the Grinch.

Bitter and hateful, the Grinch is irritated at the thought of the nearby village having a happy time celebrating Christmas. So disguised as Santa Claus, with his dog made to look like a reindeer, he raids the village to steal all the Christmas things. The village is sure to have a sad Christmas this year.

The Grinch hatches a scheme to ruin Christmas when the residents of Whoville plan their annual holiday celebration.