Santa's Workshop at the North Pole is abuzz with excitement and activity. Christmas is right around the corner! The Elves are busily preparing toys and gifts for children all around the world, but their tasks aren't enough to keep them from gossiping about the new Elf on the block. Poor Elfis is the target of their ridicule and jokes because he looks unusual and acts differently than all of the other Elves. They even accuse him of being an Elf Impersonator!
Feeling unloved and downtrodden, Elfis sings the blues and runs away from Santa's Workshop. When Santa, his reindeer and Mrs. Claus learn what happened, they are upset. Santa sends the reindeer out to find Elfis and bring him back. Meanwhile, he and Mrs. C. remind the rest of the Elves that they should accept others for who they are, no matter what their differences. The Elves are ashamed of themselves, and when the reindeer bring Elfis back, they apologize and ask him to lead them in a song of celebration. He agrees, naturally, and the whole lot of them sing and dance together in a lively Christmas finale!