Ten-year-old Gloria and her recently widowed grandfather Bud befriend a mysterious reindeer when the family gather for Christmas. Bud comes to believe that Prancer may actually be magical, but Gloria fears his theory will send him straight to a retirement home.

When a young boy discovers Prancer, a reindeer injured in a forest, he takes it upon himself to nurse it back to health and return it to Santa Claus. Along the way, he learns the true meaning of Christmas and the importance of family.

After finding a wounded reindeer in the forest, a young girl forms a bond with it and believes that it is Santa's lost prancer. She tries to convince her family and friends of its magical abilities, but faces skepticism and doubt. Along the way, she learns about the power of belief and the true meaning of Christmas.