Will Ferrell stars as Buddy, a human raised by elves at the North Pole. But the over-six-foot-tall Buddy literally does not fit in, and he ventures to New York (via the seven levels of the Candy Cane forest, the sea of swirly, twirly gum drops, and the Lincoln Tunnel) where he is reunited with Walter, his biological father (James Caan), a children's book editor, who was not aware of Buddy's existence.

Clad in yellow tights and a whimsical elfin coat, Buddy's childlike enthusiasm for all things sugar and all things Christmas converts cynics like Walter, melts the heart of Jovie (indie queen Zooey Deschanel), a wary department store clerk, and inspires the faith that is needed to power Santa's sleigh. There are warm and wonderful scenes, including Buddy and Jovie's impromptu duet of "Baby, It's Cold Outside," and Buddy's inevitable tangle with a department store Santa ("You sit on a throne of lies," Buddy tells the imposter).