Danny is a middle school student who lives in the town of Norpole, Maine with his mother Elizabeth and his sister Jennifer. Sadly, Danny's father has died, and this will be the family's first Christmas without him. When Jennifer says that she doesn't believe in Santa Claus any more, Danny decides to prove that Santa is real. With help from his sister, and his friends Matt and Jake, Danny begins his investigation. The young people interview local residents who may have knowledge of Santa's existence, and look for evidence using high-tech gadgets that they assemble themselves.

Meanwhile, Elizabeth, who is a professional hairdresser, is befriended by Sammy, who is new in town. Sammy has recently been hired as the marketing director of the Norpole Toy Company. Sammy tells Elizabeth that Rick, the head of the company, is really Santa Claus. He enlists her help for a hair and fashion makeover for Rick. He also arranges a cross-marketing tie-in for Rick to appear in person at a popular Christmas season event in town – the Gingerbread Brawl, a professional wrestling promotion.