Louie and Yoko meet Tom, one of Santa’s elves. Tom has been chosen by Santa to help him on Christmas Eve but he suffers from vertigo, he’s afraid of the dark, and lacks an enormous amount of self-confidence. With his drawings, Louie is able to help Tom overcome his fears in an adventure that leads them to Santa’s Grotto, where the elves make toys.

Louie and Yoko meet The Blue Knight who informs them that The Rainbow Fairy, keeper of all the colours of the world, has been kidnapped by the evil wizard Kroodle. Louie, Yoko and The Blue Knight set out to rescue The Rainbow Fairy. and thanks to the objects and animals that Louie draws with his pencils, the team manages to evade all the traps Kroodle lays in their path.