When young Buddy falls into Santa's gift sack on Christmas Eve, he's transported back to the North Pole and raised as a toy-making elf by Santa's helpers. But as he grows into adulthood, he can't shake the nagging feeling that he doesn't belong. Buddy vows to visit Manhattan and find his real dad, a workaholic.

A crew of miniature aliens operate a spaceship that has a human form. While trying to save their planet, the aliens encounter a new problem, as their ship becomes smitten with an Earth woman.