The Bailey School kids learn a lesson about the Christmas spirit when they set out to discover if Mr. Withers, the owner of Bailey Stables, is hiding a magical unicorn.
A wise, understanding grandfather helps Robin, a Jewish child, cope with Christmas; not an easy task when even Sandy, who is also Jewish, is allowed to have a Christmas tree and Robin can't have one.
The kids at Bailey school wonder if Mr. Jolly, the new janitor, could be Santa Claus because he keeps the building as cold as the North Pole and the school building magically clean.