Santa Claus gets a telegram from Oswald the Rabbit, telling him the city is ready for his Toyland Parade and that there will be a reception in the big department store. Santa is a jolly elf indeed until he discovers that moths have eaten every last shred of his Santa suit. The day is saved when quick thinking on the part of an old elf, armed with red paint and popcorn, turns Santa's ordinary light-blue outfit into a real Santa suit. The parade is a big success, and the reception promises to be even better. Frankenstein's monster, Tarzan, Lupe Velez, Shirley Temple, Al Jolson and Bing Crosby are all there to greet Santa. Laurel and Hardy nearly spoil the day when they dress in a dragon's costume and try to steal the chocolate cake.

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