This movie begins when every year the the Pierce Family would make a video of them opening presents and having a good time around christmas. This video recording stops because the Dad dies as a firefighter. After that the Pierce family doesn't enjoy christmas as much as before. On Christmas Eve Claire, (the mom) has to go fill in for a co-worker and leaves the children home and Teddy ( the older brother) to take care of Kate. A little after their mom leaves Teddy goes out with some friends and kate follows him with a camera and takes a video of him stealing a car. While he comes home Kate is watching the videos and notices an arm she saw coming out of the fireplace. She is convinced it’s santa and asks Teddy to help her prove it but Teddy doesn't want to until Kate shows him the video tape of him stealing the car. Kate convinces him and they make a trap that the wire is connected to a camera behind the closet were they are hiding but fall asleep waiting until the wire is pulled and they hear the traps bells. They fall asleep when Kate hears the bells and sees Santa in the camera she wakes Teddy up. They run outside and once outside they see the the sleigh and reindeer floating above them. They see Santas jumping from roof to roof and Kate wants to take a closer look and decides to climb up the roof, Teddy follows after her.
Once on the roof Kate jumps into Santa’s sleigh and Teddy does to before santa comes back. They are still recording in their camera and when Santa gets on the sleigh and they are high in the air santa gets scared by the kids and loses control of the sleigh. They fall down and land in Chicago, Illinois. The reindeer scatter, the sleigh gets damaged and the present bag is lost. Santa’s hat gets lost in the crash. He says the hat allows him to go fast and go through small spaces. Kate and Teddy are going to help him, they stop at a bar trying to find help but end up stealing a car that was already stolen. Santa makes a radio out of random objects to locate his reindeer. They send kate to get the reindeer when Teddy and Santa are being chased by polices. Right when Teddy and Santa get caught by the polices Kate passes by with all the the reindeer and teddy jumps on. Santa gets taken to jail. While the kids are looking for the present bag. Teddy finds it up in a tree and climbs up to get it once on the floor, Kate looks inside and sees an elf which she needs to talk to, to get another of Santa’s magical hats. Once she crawls inside the bag she becomes small and goes deeper in to where the elves work.
Outside Teddy encounters several problems a gang see him and go and ask what’s in the bag teddy says presents they got him on the car take away the present bag they drive him to their garage. They look in the bag and there are boxes with coal they are about to throw the bag into the fire until the elves come out and attack. They think that Teddy is one of the thugs until Kate stops them. While in jail the officer in charge of Santa's case isn’t convinced by santa pulling out all the the toys that the asked for since the was small and still isn’t convinced.Until Santa tells him what the wanted that year was his ex-wife Lisa. They lock him in jail anyway santa sees that the christmas spirit is dropping so the gets the other other guys in the cell instruments and the ladies cell next to them microphones. They sing “Santa's Claus is back in town”. The elf goes in from the air vent in the cell while everyone is distracted. The officers come and see what was all the noise. Santa tells the officer to answer the phone call until the officer feels his phone vibrating answers and hears Lisa’s voice and invites for a coffee.
The quickly opens the cell and let’s santa out but santa disappears in front of them. Santa goes outside and sees that his sleigh is repaired by the elves. He also sees that the only has one hour left to deliver all the presents so Kate and Teddy agree to help him. Teddy says the name of the kids and the location, Teddy drives the sleigh and santa finish quickly. Finally, Santa drives back to drop Teddy and Kate back before their mom returns. The gives them the hat as a memory but teddy reminds him they still have the camera.But santa shows them the tape in his hand and says ho ho ho as the leaves which is what Kate asked him to do because he didn’t like them to say that because they were made up words they say santa uses. When the returns home Ms.Claus asks for a movie to watch and santa puts her the video tape. When Teddy and Kate mom gets home she sees the house decorated like it would be when the dad was alive and is surprised.
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