It’s Christmas Eve and Judy Emerson is told there’s no such thing as Santa. Determined to prove her family wrong, she sets an elaborate trap and successfully captures Santa Claus himself. But her parents think the jolly old elf is a burglar and have Santa arrested.

A bedtime story leads Littlefoot and his grandparents on a journey to a new land, where Littlefoot discovers someone who vanished before he was born: his father! Now Littlefoot must decide between two worlds. Will he leave to be with his friends in the Great Valley, or stay behind and start a new life with his father?