It’s Christmas and Storyland is completely covered in fog. When the Cry Babies get there they meet Claus, Santa’s grandson, who is very sad. It turns out this is his first year he would be delivering presents to all the babies, but because of the fog he has lost both his sled and his loyal pet Rhen. Poor Claus doesn’t know what to do, so the Cry Babies divide into groups to search for Rhen and the sled. Will they manage to find them in time so Claus can deliver all the presents?