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The animals are throwing their annual Christmas party in the Enchanted Forest. During their rumpus, Baby Bear realizes that he hasn’t gathered any gifts for Mama and Papa Bear for Christmas morning. The next day, Baby and his friend Benny Beaverton set out on an adventure in hopes of finding the perfect gift. But after making the very bad decision of trying to take vegetables from the Boo-Hag’s garden, the boys are caught as the angry witch transforms Baby Bear into a human. Baby and Benny cross paths with Goldie the Woodsman’s daughter, now an adventurous young girl, who has set out to find some Christmas spirit. At first, the little ones are afraid as they have been taught to never trust one another, but kindness and laughter prevail as the trio becomes friends and they gather a bag of potential gifts for Mama Bear in hopes that one of them would be the perfect gift. In the end, all the animals and humans realize that sometimes the perfect gift can be as simple as a loving heart.