Professor Brookfield along with daughters Peggy and Susan move to small town Pasadena, California. Their new neighbor Mrs. Fielding helps them move in, and urges the girls to participate in the annual Rose Bowl beauty pageant. Meanwhile Mrs. Fielding's son Tom makes eyes at Peggy but she's smitten with a famous football star so she tries to redirect his interest to Susan.

Members of the U.S. Army's 101st Airborne Division are fighting for their country amidst the rugged terrain of Bastogne, Belgium, in December 1944. Holley and his American compatriots have already seen one of their own, Roderigues, perish under enemy fire. The men try to rebuff another series of Nazi attacks, but what they really need is a change in the weather. Without clear skies, they'll never get the air support they need.

One of Santa Claus' "brownies" (elves) introduces the story of the Fairy Snow Queen, who plays a trick on Santa Claus by bringing all the toys to life just before Claus is due to deliver them to children around the world. She shows Claus what she's done and the toys demonstrate their abilities. The toys are distraught when Claus says they must be turned back into inanimate objects in time for Christmas, but the Fairy Snow Queen comes up with a plan to make everyone happy.