Sir Robert Norramby is organizing the Ulfstead Christmas Fair, and Sir Topham Hatt is asked to play Santa Claus. However, when he is told he will have to drive a sleigh, he begins to worry as he's never driven one before. When the sleigh finally arrives, Thomas has to rescue him when it breaks away on a hill.

The turntable at Tidmouth Sheds freezes in one position and the engines argue about who should get the one accessible berth. It is eventually agreed that Percy should get to use it as he will need someplace to rest after pulling the mail train. The other engines search for other places to sleep, but Gordon turns every shed down.