Eric is a 'different' eight year old with a vivid and untamed imagination. But in Our Lady of Mercy Orphanage, the decrepit old building where he lives, wicked Sister Prudence fills the orphaned boy's days with work and chores. When Eric is locked in the basement for misbehavior, he discovers a tunnel to the building next door. There he finds Santa Inc., the global headquarters of Santa's business empire. This begins an adventure that changes the boy's lives forever and reawakens in Santa the true spirit of Christmas.