Caillou eagerly prepares for Christmas, playing with his sister, setting up stockings, and getting cookies ready for Santa. However, a Christmas Eve snowstorm and power outage disrupt his plans. Caillou is afraid Christmas will be ruined. His mom tries to cheer him up with a story about the North Pole, where the Head Elf is dealing with his own Christmas problems, leading Caillou on an imaginative adventure. He learns that things don't have to be perfect to be good.