After Frank The Fixer Tagliano testifies against his Mafia boss in New York, he enters the Witness Protection Program and makes an unusual demand: he wants to be set up with a new life in the Norwegian small town of Lillehammer or as he calls it, Lilyhammer.

Andreas Diesen presents biographical portraits of Norwegian entertainers famous from the stage, television and cinema.

The story begins with Santa Claus falls through a hole in the ozone layer and lands on "høggeritomten". Santa's sleigh is broken, and Santa even has a little amnesia. And worst of all is that children can not get Christmas presents if he does not get the sled repaired so he can go back up in the air again. Already in the first episode, viewers got acquainted with Inga Toppen owning Blazer Mountain Panorama Apartments. This is a mountain located just above "høggeritomten". Many rich people bought shares in this property, and they get very upset when they discover that "høggeriet" spoils the view, poisons the air with heating of the tires and the "Vazelina guys" also disrupts mountain peace by playing loud music. We also meet Synnøve who owns the small farmhouse Glenna who rent out "høggeriet" to the "Vazelina guys". She works as a cleaning lady on Blazer Mountain, and when Inga hears about this she looses her job until she agrees to cancel the lease with "høggerne".