The story begins at the North Pole as Santa Claus and his Elves sing a Christmas Carol in his shop ("Happy All the Time"). Their song is interrupted by the arrival of Buddy the Elf, who, despite an abundance of enthusiasm, falls short in his toy-making abilities. Charlie, the boss, expresses disappointment, but the elves quickly chime in to make Buddy feel better. Charlie tells Buddy to take a break and asks Shawanda to pick up the extra slack. Unaware that Buddy is listening, they reveal that Buddy is, in fact, a human and not an elf. Buddy approaches Santa for confirmation and Santa reveals that Buddy, as an orphaned baby, had crawled into his toy sack and was accidentally taken back to the North Pole, where he was raised by the Elves. Handing Buddy a New York City snow globe, Santa explains that Buddy's father works in the Empire State Building, doesn't know about Buddy's existence and is on the "Naughty List" for his lack of Christmas spirit. Buddy sets off from the North Pole to New York City ("World's Greatest Dad").

Upon arriving in Manhattan, Buddy is surrounded by the sights and sounds of the city: a Business Woman yells for a taxi, a Jogger in a red suit, two Flyer Guys, and lots of New Yorkers rush by. Asking a passing Teenager where to find the Empire State Building, Buddy sets off to meet his father. Meanwhile, Walter Hobbs and Sam are discussing the unfortunate situation with their latest title, "Jingles, The Jolly Christmas Puppy," from which the last two pages are missing. Secretary Deb shows in Walter's wife, Emily, and his twelve-year-old son, Michael, who want to go Christmas shopping. Suddenly, Buddy bursts in, excited to meet his father for the first time. Stunned with Buddy's declaration that he is Walter's son, Walter demands that the Security Guards escort Buddy out, dropping him at Macy's Christmas department.

At Macy's, a Saleswoman greets Buddy, and the Manager mistakes Buddy for a corporate employee who has been sent to check on the store. Buddy falls in love at first sight with Macy's elf, Jovie, and inspires other Macy's Employees to decorate with some Christmas Spirit ("Sparklejollytwinklejingley"). Jovie agrees to go on a date with Buddy just as Santa's Helper announces the arrival of Fake Santa. Children and Parents line up, but just as a Mother leads her Child to see Santa, Buddy announces to everyone that it is not the real Santa. The two fight, and Buddy is escorted away by Policemen, who take him to the Hobbs' apartment, where Michael is trying to build a science project. Buddy agrees to help if Michael and Emily will write letters to Santa Claus ("I'll Believe in You"). When Walter arrives home, Emily reveals that Buddy is, in fact, Walter's son, as the results of a DNA test have proven.

The next day, Walter takes Buddy with him to work. Office Staff, including Sarah, are bustling around as Mr. Greenway demands a Christmas book to replace "Jingles, The Jolly Christmas Puppy." Deb entertains Buddy, telling him the shredder makes snow. Later, Buddy takes Jovie to a souvlaki stand for their dinner date, where she confesses she's always wanted to see snow. Buddy promises to take her to Christmas Eve dinner at Tavern on the Green ("A Christmas Song"). Back at the office, Walter and Chadwick desperately try to come up with ideas for a new children's Christmas story. Matthews claims to have found a lost manuscript that could save their jobs. Buddy bursts in to tell Walter he's in love and, while Walter talks with colleagues, Buddy decides to make "snow" by putting the manuscript through the shredder. The manuscript destroyed, Walter explodes with anger and tells Buddy to get out of his life ("World's Greatest Dad – Reprise"). A group of Carolers passes as Buddy leaves a goodbye note for Hobbs.

Buddy realizes he forgot all about Jovie. She's been waiting for hours at Tavern on the Green ("Never Fall In Love – With an Elf"). He arrives and apologizes, giving her the snow globe Santa gave him when he left the North Pole. Still upset, Jovie leaves.

Meanwhile, Michael and Emily see Santa out the window while reading Buddy's note ("There Is a Santa Claus"). They go to Walter's office to tell him, but he's preoccupied with trying to think up a story for Mr. Greenway. Suddenly, Buddy returns and suggests his own story ("The Story of Buddy"). Mr. Greenway loves the idea, but is rude to Michael and Buddy, demanding Walter work on Christmas Day. In response, Walter quits his job in order to finally spend time with his family.

When Michael tells Buddy about seeing Santa, everyone rushes to Central Park to help Santa gather the Christmas spirit he needs to make his now-broken sleigh fly. A large crowd gathers around Santa's broken sleigh, including New York One reporter, Charlotte Dennon. To prove to the crowd that it's actually Santa Claus, Buddy reveals what Darlene Lambert and Emma Van Brocklin received as gifts on past Christmases. Buddy urges everyone to get into the Christmas spirit, and Jovie arrives to help him ("A Christmas Song – Reprise"). The New Yorkers sing, and Santa's sleigh rises into the air, Christmas spirit restored and everyone gets what they want for Christmas!

Santa Claus: Santa Claus has a lot on his plate during the Christmas season, and it is starting to show. He is annoyed with the Elves, tired of lying to Buddy and sad that people seem to be losing their Christmas spirit. He is still the same jolly old St. Nick underneath it all, but the job is getting to him.

Buddy: Buddy is the perfect elf! He’s good-natured, he means well, and he’s happy& all the time. There’s only one problem. He’s not an elf! He’s an adult human!

Elves: The Elves are Santa’s special helpers who love their job making toys to meet their Christmas Eve deadline.

Charlie: Charlie is in charge of monitoring the other Elves, making sure every present is wrapped and every bow is tied.

Shawanda: Shawanda is a dependable and caring elf. She will do whatever she can to help out others, including Buddy, even though she accidentally reveals that he is a human.

Sam: Sam is one of Walter’s Office Staff who is in a bind at the top of the show.

Walter Hobbs: Walter Hobbs, Buddy’s real father, is so focused on keeping his job that he is not making time for his family. He can be stern and unemotional at times, but ultimately he learns to recommit to his family. Gender: Male

Deb: Deb, Walter’s secretary, has the big responsibility of keeping her boss and the whole office happy. She does this by sharing her positive attitude with everyone.

Emily Hobbs: Emily Hobbs is Walter’s devoted wife who would prefer her husband to spend a little more time at home. She is a problem solver and an excellent mother who is doing everything she can to provide a positive family dynamic.

Michael Hobbs: Michael Hobbs is the smarter-than-average 12-year-old son of Walter and Emily. He quickly befriends his new adult brother, Buddy, and does everything he can to make sure Buddy becomes a permanent part of the family..

Security Guards: Security Guard #1 and Security Guard #2 are a stern duo from Walter’s office, making sure everyone who enters has permission.

Saleswoman: The Saleswoman is the first person to greet Buddy as he enters Macy’s. She’s the consummate sales person: smiling, overfriendly, and always trying to sell something.

Manager: The manager is a terrific featured acting role for a performer with good comedic timing. As the manager of Macy’s, he’s doing everything he can to make sure all the employees stay in line.

Jovie: Jovie works as a store elf at Macy’s, but don’t be mistaken! She doesn’t quite exude the Christmas spirit. She’s kind of cynical, a bit tough around the edges, and now the target of Buddy’s complete adoration.

Santa's Helper: Santa's Helper works as a Macy’s Employee and announces when each kid gets to visit with Santa.

Fake Santa: Fake Santa is a poor replacement for the real Santa. He’s an employee of Macy’s who is a bit rough around the edges.

Policemen: Policeman #1 and Policeman #2 are a friendly pair of cops who return Buddy to the Hobbs household.

Sarah: Sarah is a staff member at Walter’s office.

Mr. Greenway: Mr. Greenway is one of the crankiest businessmen around. He is the big boss!

Chadwick and Matthews: Chadwick and Matthews are staff members at Walter’s office who are doing everything they can think of to save the day and make their boss happy.

Charlotte Dennon: Charlotte Dennon is a TV reporter with a big personality. She does her best to keep her professional persona in public and doesn’t like being shown up..

Finale Soloists: Finale Soloists #1, #2, #3 and #4

Darlene Lambert and Emma Van Brocklin: Darlene Lambert and Emma Van Brocklin are on the scene in Central Park and are convinced of Santa’s magic after Buddy reveals their past Christmas gifts.

Ensemble: The Ensemble, including New Yorkers, Comforting New Yorker, Macy’s Employees, Macy’s Employee #1, Members of the Rockefeller Crowd, Office Staff, Business Woman, Flyer Guys, Teenager, Jogger, Carolers, Passerby, Children and Parents are all important roles for creating the distinct worlds of the North Pole and New York City.