According to the story, it is Christmas Eve and Raggedy Ann and the other dolls did not have a gift for Marcella, and they wanted very much to find or make a gift for her. Making a gift was a tremendous challenge for dolls and toys that only came to life when the people were absent or asleep. Nothing seemed quite right until a Santa doll helped them. This book is based on the doll and toy characters created by Johnny Gruelle.