Santa Claus (Richard Riehle) receives a gift stuffed animal dog when his dear friend, Mr. Hucklebuckle who owned a toy store in New York City, passes away. To help cheer Santa up, they bring the stuffed dog to the magic icicle which turns it into a real puppy, whom Santa names Paws (Zachary Gordon) and tells him that they will be the best of friends for all eternity. Meanwhile, Mr. Hucklebuckle's grandson James and his wife Kate are gifted the toy store and are told by Mr. Stewart (Bill Cobbs) as long as they run it for a Christmas season with a profit then they can transfer a deed to have full ownership. James is a CPA from Los Angeles and plans to sell the store once they have ownership. Kate and James are unable to have children and are sad to face another Christmas without children of their own.