Fellow dragons Bostwick and Mortimer live in a cave on top of a mountain overlooking the nearby village. Although they love their home on the mountain's peak, Bostwick grows more curious about the villagers below as they began to prepare for Christmas. He sneaks into the village at night to investigate the situation but leaves more puzzled than ever about Christmas and what it means.

But as the eve of Christmas arrives, so does a storm. And with a deadly avalanche looming, the entire village and all its inhabitants are now in grave danger. With a disaster of mythical proportions approaching, only two mythical beasts have the power to stop it, save Christmas, and discover for themselves and the village what "peace on earth, good will to all" really means.