It is almost Christmas in a small town in the Pyrenees. Olentzero is a charming old man that embodies the spirit of Christmas and distributes gifts to the local children. He has already received the cards from the children in the valley and he is observing their behavior through the "magic log" burning in his chimney to see if they deserve their gifts. An evil business man arrives in the town and persuades the townsfolk to sell him the forest. He claims he will look after the forest but in reality he plans to cut it all down in order to build a ski resort. His henchman steals the "magic log" from Olentzero as well as all the cards, jeopardizing the chances for the children to receive their gifts. Anje, a young orphan, helps Olentzero to put things right. With the assistance of the other children in the village, they experience adventures and hazards until normality is restored in the valley and Christmas is duly celebrated.