The stop-motion camera shows a close-up of ornaments on the branches of a Christmas tree, amongst which is a Father Christmas who climbs down from his perch and in so doing dislodges a glass globe, which falls to the floor and breaks. A dolly among the gifts below awakes, looks about her and sees Father Christmas setting off for the forest.
Outside in the snowy night landscape, he waves his staff and "grows" a tree, then magically adds ornaments, all the while his greatcoat is lifted by the breeze. Now he goes to invite all the little insects in the forest to his Christmas celebrations.
Each of these creatures is a delicate, lifelike, mobile replica. The ladybug hears him out, then stands on her hind or third pair of legs and goes off. Beetles turn somersaults at the news as they go. The pond is frozen, but a frog jumps up through the ice and very elegantly greets Father Christmas, giving him a Russian hug.
They all ski or sled down to the pond, where they go skating. A very large Christmas cracker is popped, which sends two of them tumbling.
Next morning, Father Christmas returns to the house and climbs back up to his place on the Christmas tree.