Christmas is near, and the Ferguson family has just finished decorating thier Christmas tree. But later, when the family is drifting to sleep, others are waking up. In the living room, on the tree, the ornaments, lights, and other decorations are awakening from a year of slumber. As "Tree-Dwellers" catch up with one another, Larry, a joly snowman, spends hours searching for his brother, Terrence, who has seemed to dissapear. After giving up on his search, Larry- along with his girlfriend Debbie, his long time companion, Tinsel, and a new-comer, Splint- breaks the laws of the Tree Elders and escape the prickly branches in search of Terrence. But how will Larry and his friends find Terrence without being noticed by the family and the "Tree-Dwellers"? Will they make it back to the tree in time to be packed away? And why is this new-comer so eager to help?