After many years of separation, landscaper and part time dealer of illegal fireworks – Anders – is contacted by his father Thomas who is about to lose the family farm. To help his father, Anders returns home and starts a larger production of illegal fireworks and begins shipping it through the family's freight company. Through the traffic of fireworks, the family finds a way towards reconciliation and forgiveness for the first time since the family tragedy twenty years ago which Anders feels responsible for.

The girl Emma and her new friend the elf boy Rod, have to save Santa's newborn baby from the evil elf queen.

In the new film, Pixy the elf makes a surprise appearance at the Jul family's house on December 1. He has come to retrieve the elf hat he forgot last year, which holds a secret—his magical elf ball. Hugo accidentally destroys the elf ball, causing Pixy to lose his elf magic and begin to age rapidly. Hugo is the only one who can reassemble the ball and save Pixy, so he must fly with his siblings Alfred and Vega to the magical elf land. On their journey, they encounter many obstacles – not least the evil elf Evol and his band of elves, who try to prevent Hugo from reassembling the ball. Evol turns Alfred into a reindeer and uses magic to make Vega hopelessly in love with him.

Eight-year old Julius lives at an orphanage. Julius is a bit of an outsider, and secretly still believes in Santa Claus. When he is confronted with the fact that Santa Claus may just be the headmaster of the orphanage dressing up, Julius loses not only his belief in Santa - also his belief in himself. But then something strange happens, and suddenly Julius finds himself in a magic world.