On Christmas Eve, a little boy named Timmy was read a Christmas story and tucked into bed. The resident mouse Gumdrop , while admiring the house all decorated for Christmas, noticed Timmy's letter to Santa on the floor. The letter must of have fallen off the table and never got mailed. So he and the family dog Gobber set outside to deliver the letter to Santa and save Christmas for Timmy.

Local teenagers are holding a Halloween party at a supposedly "haunted" old mill, but find out that one of the partygoers who is dressed as an alien is actually a real alien.