A wolf captures the forest elves when they try to leave the woods to spend their diamonds. Frosty comes to their rescue.; Every single hobby-horse has been stolen from Santa's workshop and taken to the Crystal Castle in the Frozen Forest. Santa summons Frosty to go to the castle to retrieve the toys with the help of the toy soldiers Pip and Squeek.; Tess and Tom run off to the city. Frosty has a series of misadventures there before he finds the pair and brings them home.; The children have no place to use their sleds until Frosty leads them to the penguins' compund in the zoo.; Frosty makes frosted ice cream drinks for the children.; With a heat wave approaching, Frosty needs to leave town to go north. Before he goes, he leaves a message in the snow on a hill.