Pudding, the youngest of three Furkins, or elves, living in a barrel in the basement of a human named Noah, proves that a shy Furkin is capable of great deeds like the heroes of the past.
When Santa finds it impossible to control his mischievous elves and stop them from ruining his workshop, he brings Alvin to the North Pole to solve the problem.
Frustrated by Santa's slowness at Christmastime, Muckle the elf creates a mechanical replacement called the Deliverator and proposes a series of contests to prove that it can do Santa's job better than he can.
As Hillary works in the miniature village, allegedly built by elves, in Sara-Kate's backyard, she becomes more and more curious about Sara-Kate's real life inside her big, gloomy house with her mysterious, silent mother.
After his village is ruined by a flood, Yorsh, the world's last elf, reads writing on ancient ruins and realizes that in order to stop the torrential rains, he must find the only remaining dragon.
