Christmas will be ruined for eight-year-old Penny and her cousin Matt if he doesn't get home from Australia before Christmas Eve is over.

And where is Matt anyway? He was supposed to fly home in plenty of time, but he got lost on the way. Lost! Where, and why?

Late on Christmas Eve, an elf named Finn visits sad, frustrated Penny, waiting in a strange house with her babysitter. He jollies her up by teasing her and telling her what happened.

Matt's plane had to make an emergency landing on Christmas Island, where he then got lost. Finn found him and took him to see Santa's mom, who lives on the island.

Finn knew Santa as a boy, and while Matt is flying home, he tells Penny about little Nicholas and his mom, about how they found Christmas Island, and much more.

Penny and Matt are reunited in time to get to bed before Santa's visit. The story ends with Santa repeating to Finn his wish to make the world a better place for all children - for one day, then two, then three, etc. until it's a good world for kids all year long.