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Ernest P. Worell, a sweet but silly taxi driver who at times suffers delusions of grandeur, has just chauffeured a rather extraordinary fare: "His Great Red Oneness, the Claus" himself. It seems Santa hasn't got the magic for another Christmas season, and has come to Orlando, Florida for Joe Carruthers, the man he has chosen as his successor. But things quickly begin to unravel, thanks to Joe's meddling agent and Santa's increasingly unreliable memory. Incredibly, dimwitted Ernest soon becomes Santa's only hope! Joining forces with a young runaway named "Harmony Star", Ernest rushes to save the holidays as we know them.