Dora, Boots, Diego, and King Unicornio leave the Enchanted Forest to end an ancient feud between the unicorns and the dragons, and to save the lost continent of Atlantis. Meanwhile, a greedy owl is given the opportunity to act as king and watch over the forest.

Santa Claus narrates the story of when Swiper tried to swipe the star off the Christmas tree at Dora's Nochebuena party. He then finds himself on Santa's naughty list. When Dora tries to ask Santa if there's any way to take Swiper off the naughty list, Santa says the only way is that if Swiper learns the true meaning of Christmas.