Sisters Nora and Agnes reunite with their estranged father, the charismatic Gustav, a once-renowned director who offers stage actress Nora a role in what he hopes will be his comeback film. When Nora turns it down, she soon discovers he has given her part to an eager young Hollywood star.

When young Buddy falls into Santa's gift sack on Christmas Eve, he's transported back to the North Pole and raised as a toy-making elf by Santa's helpers. But as he grows into adulthood, he can't shake the nagging feeling that he doesn't belong. Buddy vows to visit Manhattan and find his real dad, a workaholic publisher.