Nicolas Barnsworth, un jeune orphelin originaire d’Australie, est choisi par le Père Noël pour le remplacer lorsque ce dernier prendra sa retraite à l’âge de 163 ans. Il a donc quinze ans devant lui pour tout apprendre du métier de Père Noël…
The film opens in Sydney, Australia where Nicholas and his best friend Felix, gazing at the department store window seeing what Santa's workshop looks like. They reside at the orphanage where all the Children were orphans. The bully, Grincroch, picks on Nicholas that Santa doesn't exist as he asks him that he's afraid of heights. But, Nicholas manages to retrieve a toy for the child after climbing up the orphanage fence. Nicholas was pure of heart believing Christmas and Santa. But on Christmas Eve, Nicholas's best friend Felix, gets adopted by his new parents and gives his lucky charm to Nicholas as Felix with his new parents move to America. During Christmas Eve dinner, Little Beatrice gives some chocolate to Nicholas as he introduced himself to her. Nicholas and Little Beatrice sees a shooting star as Beatrice is to be lucky star to have the dream of best Christmas.
The movie opens where a little boy writes a letter to Santa Claus that he wants a remote control flying bug and mails it to the North Pole. At the North Pole, an Inuit Eskimo boy named Tim-Tim picks up the mail to deliver it to Santa's Workshop. Beatrice Lovejoy, Santa's wife, picks up the mail, but she won't allow Tim-Tim to take a peek inside. As Santa is about to make his rounds, Mrs. Lovejoy closes the roof and reminds Santa to celebrate his retirement in Sydney, Australia. As Santa gives Santa's robe and hat to Nicholas, Beatrice and all the elves congratulate him on being the new Santa. After Santa and Mrs. Lovejoy leave, Nicholas takes over the workshop and receives a letter from the little boy who wanted a remote control flying bug. Tim-Tim secretly enters the workshop and Beatrice notices him and decides to show him around. Nicholas asks Tim-Tim why is he in the workshop and asks him to leave, but Beatrice decides to show him around the workshop. On board the airplane, Santa worries about Nicholas as Mrs. Lovejoy convinces to Santa to remind of himself of something. He pulls his blue bunny toy and holds it to his heart.