Jared is angry. His father abandoned the family one year earlier after being fired by Stone Industries. He wants revenge against Stone Industries (Jonas Stones company), and plans a burglary of Jonas house. Sarah (Jonas daughter) is angry also. Shes alone on a rainy Sunday because her father is busy. Her mother died when she was four. Jonas dove into work and pulled away from Sarah. Through her rain-spattered window, Sarah spies a round little man (Nicholas) standing at the gated entry to her home. An umbrella magically appears, and Sarah believes she is imagining things, yet she sees potential in the day. Intrigued by the magic, Sarah bounds down the steps to prevent the butler (Stevens) from throwing Nicholas out of the house on the housekeepers orders. Nicholas claimed to that he was Santa. To quiet Sarah, Jonas instructs Stevens to take Sarah and Nicholas, under close scrutiny, to the mall. Mary Roberts prepares for church services but learns Jared will not come. When her children discuss the mall Santa, Jared declares theres no such thing and storms away. Nicholas informs Sarah he is Santa. She declares he cant be, and sits sullenly on the drive to the mall. At the mall, Sarah leads Stevens on a personal shopping spree as Nicholas wanders away. Sarah emerges from a store with a package-laden Stevens. Nicholas is surrounded by scores of children. Sarah orders Stevens to fetch him. Stevens, moved by Nicholas influence over the crowd, joins in singing Silent Night. When they approach Sarah, she is teary-eyed. Nicholas explains the wonder of Christmas; Sarah turns away. That evening, Stevens informs Nicholas that he must leave the next morning because he upset Sarah. However, Stevens sneaks Nicholas up to Sarahs room so he can speak to the girl first. Nicholas apologizes and gives Sarah a gift of a Nativity snow globe. Sarah, touched, wakes and convinces her father to let Nicholas stay. The next day, they drive through slums to the Childrens Home. Nicholas says they are to be the Santa and helpers for the children. Sarah erupts because the day was for her. Stevens and Nicholas leave her in the car. Sarah, angry again, steps out, drops the Nativity globe and marches into the hostile streets. She weakens when she sees Jareds gang approaching. Jared, knowing they have more important plans, lets Sarah go. She runs back, tearfully picks up the Nativity globe and hugs it close. Inside, Nicholas and Stevens entertain. Sarah witnesses the unfolding of miracles. She realizes who Nicholas is, how she has been lost in self-pity, and has missed the suffering of others. She steps out of character to save the day. Later, at the Stone Christmas party, Jonas, among associates, spots Sarah dancing with Nicholas, and is shocked to see how shes grown. He cuts in until he is interrupted by business associates. Sarah sadly searches for Nicholas who turns anxiously and scurries away. Sarah follows. Jared carries a gun. The gang approaches a large desk in the library. Jared crowbars a drawer. Suddenly lights blaze on, Nicholas at the switch. Jareds companions jump out a window; Jared trips and the window seals shut before he escapes. He levels the gun at Nicholas who tries to calm Jared; but Sarah bursts into the room. Jared fires reflexively. Nicholas shouts, "No " When the partiers rush to the library, they find only the abandoned gun. Two thousand years earlier, outside Bethlehem, travelers labor homeward for Caesars census. On a hillside nearby, Jared, Sarah and Nicholas appear. Jared tries to run but cant; Sarah rebukes him, and Nicholas angrily orders both to join him. Since they have no choice they follow. They approach an inn where Joseph seeks a place for his pregnant wife Mary for the night. He is rejected, and Jared angrily rushes the innkeeper shouting that the woman is pregnant. The door slams shut. Nicholas explains no one can hear him. They are observers only. Nicholas leads them away from Mary and Joseph. On a dimly-lit, cobbled street, a rich couple walks anxiously. A group of young boys accosts them, ultimately cutting loose the mans money purse. The couple escapes. As the boys attack the purse, another boy (Simon), tattered blanket over his shoulders, fights off the others and holds the money purse high. He extracts one gold coin, instructs the boys to buy a meal, and walks away. Jared sees himself in the boy and cheers his prowess. Simon follows the rich couple. He reaches them as they realize their money is gone. They search frantically; Simon hands them the purse, and says, "You dropped this. I took one coin as a reward to feed the others." The couple is stunned as Simon walks toward a bright star over a hillside cave. Jared is shocked. The travelers stand in the shadows of the cave some distance from Joseph, Mary, and a baby. Simon steps through the crowd of shepherds at the entrance, walks to Mary, and gives his tattered blanket for the baby. Jared is overwhelmed with the goodness in Simon, a boy he viewed as tough and compassionless like himself. In a tearful exchange, Mary and Joseph invite the travelers to join them. Mary explains, "All he asks is that we love each other. He will always be with you he will never leave you." At the Stone mansion Mary Roberts has arrived to hear news. The housekeeper runs in screaming that they have returned. Hugs abound and Nicholas is arrested. The next day (Christmas Eve), Nicholas is escorted to the courthouse. Sarah breaks from her father, Jared pulls away from the police, and both run to Nicholas. The boy speaks to the crowd in a voice they miraculously hear, about the real meaning of Christmas and the love for which it stands. Nicholas hugs them and excuses himself. He has work to do. He disappears. Christmas morning dawns with miracles galore. All begin to understand the gift theyve received.
