Havoc in Toyland. Gruzzlebeard casts a spell on all the toys, making them come to life. Santa and the elves must return them to normal, but Gruzzlebeard traps Santa in a lot of bubble gum. Santa eventually escapes and helps the elves return the toys to normal. One toy decides to rebel against Santa, but the other toys stand up to him and tell Santa. The bad toy asks Gruzzlebeard for a potion to turn all toys at the toy store alive, but Santa arrives on the scene to set everything right.