The Teddy Bear. A boy wants a teddy bear the size of a real bear for Christmas! The elves are being mean to Balbo, meanwhile, so Balbo decides to run away and give himself to the boy. Gruzzlebeard goes after Balbo because he wants to hypnotize Balbo into telling him all about Santa. The boy becomes attached to Balbo, but Gruzzlebeard takes him away. Soon, Gruzzlebeard, Balbo and the boy all find themselves in the middle of a lake, risking their lives, and Santa eventually comes to save the day. He then gives the boy a plush of Balbo that can grow to life-size.