"When Abominable Snowmen Tyrone and Austin take Santa's magic sack, it's up to the heroic Action Elves to use their terrific toy-building talents to get that sack back!"
Uniqua, Pablo, and Tasha are sitting on the picnic table making toys. They tell the viewer that they use tiny magic hammers to build anything as they sing "Action Elves". They then tell the viewer that they are no ordinary elves - they are the Action Elves who save Christmas. Uniqua introduces herself as Snappy, Tasha introduces herself as Flappy, and Pablo introduces himself as Mister Jingles. Afterwards, they report to the North Pole and enter Santa's workshop.
Santa speaks to them by phone and tells them terrible news: his magic sack has been stolen by the Abominable Brothers. The Action Elves enter the storage room and get on to the Rocket Reindeer. They set out to find the Brothers' igloo.
The elves cannot see where the Abominable Brothers' igloo is, but they do see two snowmen carrying a red sack. They realize that the two snowmen are Tyrone and Austin, the Abominable Brothers. They try to land close to them, but accidentally land far behind them.
Meanwhile, the brothers are hauling the sack to the igloo. They do not know that the sack is magic yet. Tyrone is pulling it while Austin is pushing. They have a conversation about how the sack is so heavy. Then they wish it was lighter and the sack turns smaller. The brothers wish for additional things as they sing "Magic Sack". The sack grows legs and starts to walk. Then they head to the igloo.
The elves land, but the Rocket Reindeer snaps in half. They start to walk and realize it is a lot more difficult to walk to the igloo rather than fly. Then they spot the snowmen and start running, but the brothers have already opened the igloo door and wished that the sack would turn into a couch.
The elves craft a plan to lure the brothers outside. Snappy makes a wind-up robot toy with her tiny hammer and drops it purposefully on the igloo's floor. The robot walks outside and the brothers follow. Then Flappy and Mr. Jingles wish for the sack to be a sack again, rather than its current couch form. The elves start running toward the workshop.
Snappy's cell phone rings and it catches the brothers' attention. They see the elves stealing back the sack and chase them. They start a snowball fight while singing "Snowball Fight". During the fight, the Action Elves and Abominable Brothers fall into a large pit. Snappy's cell phone rings again, but the brothers take it before the elves can answer it. The snowmen talk to Santa without knowing who is on the other line. They soon figure out that the magic sack is Santa's. Santa instructs the Abominable Brothers and the Action Elves to work together to fill up his sack with toys. Afterwards, they must bring it to his sleigh so that he can make his delivery trip.
The five return to the workshop and fill the sack with toys as they sing "To Fill the Sack for Santa". The elves are grateful and give the brothers two action figures outside. They all see Santa flying with his sack in his sleigh. Pablo's stomach rumbles and he invites everyone to his house for egg nog.
The workshop transforms back into the backyard as the children sing the end song. They enter Pablo's blue-colored house and shut the door. The entire cast opens the previously closed door and shouts "Merry Christmas!"