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.

7-year-old Anna is having trouble sleeping at night. She accidentally left her favourite doll, Sophie, at her family's holiday home, and Anna's parents won't drive all the way to the house to retrieve the doll. Just as Anna is wondering if Sophie feels lonely, she suddenly hears a strange sound. Anna is visited by a small yellow aeroplane named Zanzibar along with its crew: Captain Bimse and the co-pilot Goggeletten. With her trusted teddy bear Mr. Johnson in tow, Anna embarks on a magical rescue mission with Captain Bimse and Goggeletten to save Sophie.

A cold night in December. Ebba waits for the tram to go home after a party, but the ride takes an unexpected turn.