For hundreds of years, the Claus family has delegated the title "Santa" to a chosen few of its members, which can be passed down upon retirement. Each Christmas, Santa and his vast army of highly trained elves produce gifts and distribute them around the world in a one-night high-tech operation. However, when one of 600 million children to receive a gift from Santa on Christmas Eve is missed, it is deemed ‘acceptable’ to all but one—Arthur Claus, the current Santa’s misfit son deemed ineligible for the title, who executes an unauthorised rookie mission to get the last present halfway around the globe before dawn on Christmas morning.

Fred Claus and Santa Claus have been estranged brothers for many years. Now Fred must reconcile his differences with his brother whom he believes overshadows him. When an efficiency expert assesses the workings at the North Pole and threatens to shut Santa down, Fred must help his brother to save Christmas.