A boy's father won't come home for Christmas because he is an archaeologist. Something from his site has been stolen and he cannot leave until it is found. Meanwhile, Santa has gone to Almeria and Gruzzlebeard has mixed up the telephone chords so when the elves call Santa, they'd really be calling Gruzzlebeard. They call asking to go to Almeria to get a magic carpet, and their answer is yes. However, they get captured by people... who actually stole the missing item from the site, who ransom for the elves! Gruzzlebeard helps out Santa in order for him to forgive him. Then, the boy's father is brought back to his son on the magic carpet for Christmas.