Santa doesn't want to retire, but rules are rules and he must train someone to replace him. The lucky winner, to be chosen from among millions of children, must be named Nicholas, be an orphan and have a pure heart. On the other side of the planet, there is a little boy who is a perfect match, but his lack of self-confidence and fear of heights make him a poor contestant. Will Santa agree to step down, and help his apprentice take his place?

At 50, Merlin—the greatest magician in the kingdom— would like nothing more than to retire to the woods and live in peace. But with the arrival of the fairy Viviane and young Lancelot, Merlin's plans are derailed.

A young boy named Nicholas is about to become the next Santa Claus, but must first avoid a crisis that's threatening the magic of Christmas before he can succeed in his new role.