Santa stops at a home to drop off Christmas presents and, spying a tray of goodies, sits down for a snack. While he eats, the presents come to life. A toy sailor in a sailboat cruises around to explore, until he attracts the notice of a pretty shepherdess spinning on top of a music box. They flirt until she catches the eye of the evil, black-clad jack-in-the-box. He blows the sailor away, but she spurns his advances. So black-jack cranks the music box up to high and, while she spins around, he throws some rope at her, wrapping her up and binding her. Then he carries her over to a toy train set and lays her on the tracks. The sailor finally rights himself and, despite black-jack's best efforts, manages to save the day! Santa finishes his snack and rewraps the gifts keeping the new lovers together in one package and chastising the jack-in-the-box as the cartoon comes to an end.