In a village in Lapland, young Nikolas loses his family in an accident. The villagers decide to look after the orphaned boy together. At the end of each year, on Christmas Day, Nikolas has to move to a new home. To show his gratitude to the villagers, Nikolas decides to make toys for the children of the families. Soon almost every house has presents on its doorstep on Christmas morning.
When the village suffers a food shortage, the villagers have to send Nikolas to work as an apprentice for a carpenter, Iisakki. Nikolas can create even better presents. Iisakki, however, forbids Nikolas from making presents. The Christmas present tradition is in danger of coming to an end.