Elsie and Peaches are two little soft toys who are best friends with a little girl named Rosie. It's Christmas time and Rosie, Elsie, Peaches, and their little mouse friend, Michael, are excited to see Santa and his elves. Unfortunately the elves make some unkind judgements about Michael the mouse. They become frightened and they faint, which leads to an adventure with Santa and a lesson for the elves.