Six-year-old Susan Walker has doubts about childhood's most enduring miracle—Santa Claus. Her mother told her the secret about Santa a long time ago, but, after meeting a special department store Santa who's convinced he's the real thing, Susan is given the most precious gift of all—something to believe in.

Jacob is a young boy with a gift for carpentry who is busy finishing up a project for a contest. His teacher, Rabbi Simeon, not only instructs him in carpentry, but also teaches him important lessons about God. Rabbi has just taught Jacob that when you give a gift to one of God's children, it's like giving a gift to God. The night before the contest while working on his project, Jacob has fallen asleep in the workshop and is awakened by a bright light. The light is a star which is directly over Jacob's father's stable. As he approaches the stable, he sees a man, a woman, and a newborn baby which is laying in the straw. Remembering what Rabbi Simeon had told him, Jacob returns to the workshop and takes his project (a feeding trough) to the new family. The morning of the contest, the Rabbi pleased to find out that Jacob has acted upon the lesson he learned and has truly given a gift to God.