Plot

Raised as an oversized elf, Buddy travels from the North Pole to New York City to meet his biological father, Walter Hobbs, who doesn't know he exists and is in desperate need of some Christmas spirit.

Buddy was a baby in an orphanage who stowed away in Santa's sack and ended up at the North Pole. Later, as an adult who happened to be raised by elves, Santa allows him to go to New York City to find his birth father, Walter Hobbs. He, who is on Santa's naughty list for being a heartless jerk, had no idea that Buddy was even born. Buddy, meanwhile, experiences the delights of New York City (and human culture) as only an elf can. When Walter's relationship with him interferes with his job, he is forced to reevaluate his priorities.—Ken Miller <wkmiller704@yahoo.com>

On Christmas Eve, an orphaned baby crawls into Santa Claus's sack at an orphanage and is accidentally taken back to the North Pole. The elves discover the infant and name him Buddy, inspired by the label on his diaper. Papa Elf adopts Buddy and raises him as one of his own. Despite his large size and lack of elf-like skills, Buddy grows up believing he is an elf. However, as an adult, he learns the truth: he is human. Papa Elf reveals that Buddy's birth parents are Walter Hobbs and Susan Wells. Susan put Buddy up for adoption before she passed away, and Walter, now a children's book publisher in New York City, is unaware of Buddy's existence.

Determined to find his father, Buddy travels to New York. He tracks Walter to his office at the Empire State Building, but Walter mistakes him for a Christmas-gram messenger and has him escorted out. Buddy wanders into Gimbels department store, where he meets Jovie, a jaded store employee who catches his eye. When Buddy learns Santa is scheduled to visit the store, he stays overnight and transforms the space into a winter wonderland. The next day, Buddy exposes the store Santa as a fraud, leading to a chaotic brawl that gets him arrested.

Walter reluctantly bails Buddy out of jail and agrees to a DNA test, which confirms that Buddy is his son. Encouraged by the doctor, Walter brings Buddy home to meet his wife, Emily, and his son, Michael. While Walter and Michael are unsettled by Buddy's eccentric behavior, Emily insists they give him a chance. Over time, Michael warms up to Buddy, especially after Buddy helps him defeat a group of bullies in a snowball fight. Encouraged by Michael, Buddy asks Jovie on a date, and the two grow closer.

Meanwhile, Walter's publishing company is in trouble after the failure of their latest book. Under pressure from his boss, Fulton Greenway, Walter scrambles to produce a successful pitch in time for Christmas Eve. Walter arranges a meeting with renowned ghostwriter Miles Finch, but Buddy unknowingly disrupts the meeting. Mistaking Finch's dwarfism for elf hood, Buddy inadvertently insults him. An enraged Finch storms out, leaving Walter furious. In a moment of frustration, Walter lashes out at Buddy, prompting Buddy to leave the meeting room heartbroken. Before departing, Buddy writes an apology to the family on an Etch A Sketch. And goes on his way.

Walter and his team discover Finch's abandoned notebook, which contains ideas for a new book. As Walter presents the pitch to Greenway, Michael interrupts with news of Buddy's disappearance. Realizing his mistake, Walter quits his job and sets out to find his son.

Meanwhile, Buddy stumbles upon Santa's sleigh, which has crash-landed in Central Park due to a lack of Christmas spirit. Santa explains that without the engine, the sleigh cannot fly. Buddy retrieves the engine and reunites with Walter and Michael. Walter makes things right with Buddy and they embrace. They accompany him to meet Santa, and Michael uses Santa's list to prove his authenticity to the news crews gathered outside the park. As Buddy attempts to repair the engine, the Central Park Rangers chase the sleigh.

Jovie steps in to save the day, leading the crowd and viewers at home in a spirited rendition of Santa Claus Is Coming to Town. Their collective belief restores enough Christmas spirit to power the sleigh without the engine, allowing Santa to complete his deliveries.

By the following Christmas, Buddy and Walter have started their own publishing company, with their first bestseller being a children's book based on Buddy's adventures. Buddy marries Jovie, and they have a daughter named Susie, whom they bring to visit Papa Elf at the North Pole.