A boy named Jon spends all his time whittling toys and little wooden animals for the village children. His parents apprentice the boy to a clockmaker, and Jon must hide his whittling. An elf comes to him in the night and requests that Jon whittle a little village for him, complete with animals. Jon complies and the elf helps him become the royal toymaker at the palace.
Two orphans spend Christmas with a mailman and his wife. While there they learn about Xavier Patch, a recluse, who has no friends. The orphans decide that Mr. Patch needs to receive some presents on Christmas, too.