Fredric, a young boy, works as apprentice for a "crusty old baker" who doesn't bake holiday cookies. When the baker has to leave to visit his brother, he leaves Fredric in charge of the bakery for a week. Fredric gives a loaf of bread to an old woman and in return, the woman teaches him how to bake Christmas cookies. The cookies are a big success and even the Princess orders a tray of cookies. However, the baker returns and flies into a rage when he learns that Fredric has baked cookies and dismisses him. When the Princess returns for the cookies, the baker refuses her and that makes the King angry. He orders the baker to make cookies or be banished. The baker spends the night trying to bake cookies, but fails. Late at night the old woman brings Fredric back to the bakery to bake the cookies that will save the baker from banishment. The baker learns a lesson and both he and Fredric are rewarded by the King.; When two little girls become lost in the forest during a snowstorm, they are rescued by three elves in an oak tree. The elves shrink them with magic wild bluebell pollen and an owl takes them back home where the girls eat a magic sunflower seed to regain their normal size. After the storm the girls return to the elves' tree only to find it blown over by the storm. The girls then give the elves their doll house to use for their home.; Rusty, a dog, lives at Santa's Workshop at the North Pole. He stows away and goes with Santa on his Christmas Eve trip to deliver presents. Santa gets stuck in a chimney and Rusty is able to get help.; Santa comes to the zoo and gives each animal modern gifts.; When Giuseppe the organ grinder becomes ill the week before Christmas, a young boy takes his instrument and monkey and collects enough money to give him a happy Christmas.