- At Christmas, Thomas remembers a friend who saved him and Toby a year ago, so decides with the others to throw her a party in return. But he and Toby have the hard job of trying to help her out of her snowbound house.
- It's Christmas time on the Island of Sodor and Thomas and Toby are very busy carrying people and parcels along the branch line. Despite Annie and Clarabel complaining that they're overloaded, Thomas retains his festive spirit.
Near his branch line is a little cottage. This is the home of an older woman named Mrs. Kyndley. Thomas always whistles "Happy Christmas!" to her and agrees that Christmas wouldn't be the same without her.
At the sheds, all the engines have been polished but Thomas doesn't mind and tells them he wants to throw Mrs. Kyndley a party to thank her for saving him from a landslide the year before. When she was ill in bed, she waved her red dressing gown out the window to warn Thomas and the Fat Controller sent her to Bournemouth to get better as a reward.
All the engines agree that a party is a great idea and hope that the Fat Controller agrees as well. He does, but, there's a heavy snowfall, trapping Mrs. Kyndley in her house. Thomas bravely puts on his snow plough and sets off with Toby to rescue her and soon, they arrive at the cottage which is covered in snow. Thomas whistles to Mrs. Kyndley to tell her they have arrived and she responds. Suddenly, Terence arrives with his own snowplough to help clear a path from the cottage to the railway. Once everything is cleared away, Percy takes the workmen home and Terence stays behind to look after Mrs. Kyndley's cottage.
Thomas and Toby take her to the shed, where the party is supposed to be, but as they arrive home, they find the sheds in darkness. Suddenly, a switch is thrown and the sheds are covered in lights. The Fat Controller congratulates the two engines and everybody sings carols. Thomas and his friends think it was the best Christmas ever and Mrs. Kyndley can think of nowhere she'd rather live than with them on the Island of Sodor.
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