It is Christmas, and a young girl's parents have set up a Christmas tree in her room. The unnamed girl is happy to find new toys for her under the three, including a new doll, a teddy bear, and a toy giraffe. She discards her old rag doll on the floor, and devotes her attention to the new toys. She eventually falls asleep with her new toys on the bed.The girl has a dream in which the rag doll comes to life. To prove that it is still worthy of the girl's attention, the rag doll dances, plays the piano, and skates on ice. A clumsy move causes the doll to be trapped in a ball of yarn. The teddy bear comes to life and eventually unwraps the rag doll.The rag doll attempts to ride the toy giraffe, but the giraffe throws him off its back. The rag doll falls head-first into the girl's shoe. The rag doll frees itself, and then pull's the giraffe's tail. The angry giraffe chases him away, and the rag doll climbs on the girl's library to escape its wrath. The rag doll looks at a framed photo of the girl, then throws it on the floor.The rag doll activates an electric fan, and causes a virtual storm within the girl's room. The girl is amused, until the rag doll is blown away by the wind. The rag doll nearly knocks over a vase as it attempts to avoid falling off the table. The girl prevents the vase from falling down, returns the rag doll to safety, and then hugs it,The dream ends. We see the girl still sleeping in bed, while the rag doll is still discarded on the floor. The film ends.