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Scott Calvin (Tim Allen) has been Santa Claus for the past eight years, and his loyal elves consider him the best Santa ever. But Santa’s got problems (he’s even mysteriously losing weight) and things quickly go south when he finds out that his son, Charlie, has landed on this year’s “naughty” list. Desperate to help his son, Scott heads back home, leaving a substitute Claus to watch over things at the Pole. But when the substitute institutes some strange redefinitions of naughty and nice, putting Christmas at risk, it’s up to Scott to return with a new bag of magic to try to save Christmas.

Malcom Crowe is a child psychologist who receives an award on the same night that he is visited by a very unhappy ex-patient. After this encounter, Crowe takes on the task of curing a young boy with the same ills as the ex-patient. This boy “sees dead people”. Crowe spends a lot of time with the boy (Cole) much to the dismay of his wife. Cole’s mom is at her wit’s end with what to do about her son’s increasing problems. Crowe is the boy’s only hope.