Hoping to get away from the troublesome Groons, The Little People build a ship and sail away from the Valley of the Small Ones to a New World. When they reach the New World, they find it's occupied by Indian Groons. After some skirmishes the Little People and the Groons make peace and hold a thanksgiving dinner. Later they have a Christmas celebration with a special guest of honor.; The Old One is puzzled when the bottom half of a snowman built by Jinx and Cork doesn't melt.; Loop can't make a figure-eight with his ice-skates, so he makes letters instead.; The Little People rush in to see what presents Santa has left in their stockings.