There's only one person on the planet who never receives any presents on Christmas Santa Claus! That changes when the children from a nearby village meet with the Elves and work together to make Santa a gift. While they are working hard, the evil Gruzzlebeard unleashes two hungry termites on Santa's house, and they almost succeed at eating it all. Just before they are captured, the termites eat Santa's special suit that comes with magical powers. Feeling distressed, Santa awakes to a big present outside, courtesy of the children, who had their special gift planned when hope was almost lost.