This tale of good versus evil takes place in a magical land where toys come to life and evil is transformed into good. What makes The Christmas Angel especially entertaining is the combination of graceful skating by such well-known talents as Dorothy Hamill and Elvis Stojko and the emotive music of Mannheim Steamroller. The story tells of an evil gargoyle named Gargon (Stojko) who steals the Christmas angel (Tonia Kwiatkowski) from atop a snowy village's Christmas tree, thereby preventing the arrival of Christmas. A young mother (Hamill), along with a host of toys-come-to-life, follows Gargon into the dark otherworld in an attempt to rescue the stolen angel.

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