Ricky Rodgers is a poor preteen boy who lives on Rapsittie Street with his great-grandmother Fran. When his class's Christmas gift exchange is coming up, Ricky wishes to give his teddy bear, a gift from his late mother, to his classmate, Nicole, an affluent, self-centered girl who believes that anything she deems "cheap" is not worth her time. When Ricky gives her the bear after school, she angrily rejects it and throws it away, causing Ricky to run away upset. After writing a letter to
Santa and being teased by Nicole for doing so, Ricky heads to mail off the letters, only to drop one of them, resulting in the wind blowing it to Nicole's house. Nicole reads and learns that, alongside a video game console, Ricky asked Santa to bring toys to all the kids in his class, including Nicole, and that his teddy bear holds sentimental value. Remorseful, Nicole, alongside her best friend Lenee and Ricky's friend Smithy, attempts to find the bear to no avail. After looking through the local garbage man's basement, Smithy suggests the bear may be in the local dump. Upon arrival, the trio is ambushed by guard dogs and class bullies Todd, Tug, and Zeke. Smithy attracts the dogs' attention by throwing his sandwich at Todd, prompting them to attack the bullies as the bullies run away. Smithy finds the bear on top of a car, and Nicole returns it to Ricky, who explains that it was a gift for her and that friendship, like the bear, means a lot to him. In a subplot, after Nicole makes fun of Lenee for still believing in Santa, Lenee begins to question her belief in Santa Claus, which leaves her depressed. Her father restores her spirits, allowing not only Lenee to continue believing in Santa but also Nicole to believe in Santa, after Fran confesses that she never stopped believing in Santa, much to the pleasure of Nicole’s parents. Nicole and Lenee's family, Ricky and Fran, and Smithy all spend Christmas at Lenee's house. Smithy and the others notice Santa with his sleigh and reindeer flying outside the house, and they all proclaim their belief in Santa. ==Voice cast==