Michael

 is an orphan who spends Christmas with Samantha and Darrin Stephens.

Samantha and Darrin pick up Michael from the orphanage and bring him home for the holidays to spend Christmas with them. Their efforts to get Michael to share in the festivities of the season fail because he does not believe Santa Claus is real.

After Michael admits that he would believe in Santa Claus if he really existed, Samantha takes him and Darrin on her broomstick to the North Pole, where Michael meets Santa Claus. Later, back at home, Darrin and Michael awake. Although both feel they have dreamed the trip, Michael now believes in Santa Claus.

On Christmas morning, Michael visits Tommy and brings him a Christmas present. Michael tells Tommy he met Santa Claus and to keep this a secret.

Later, Mr. Johnson, his wife, and Mrs. Grange (the orphanage director) arrive at the Stephenses' home. Michael meets his prospective adoptive parents and says he has something for Mr. Johnson. Mr. Johnson is surprised and happy at this. He and Michael open the gift. Later that day, Mr. and Mrs. Johnson leave with Michael and they adopt him soon after.

A year later Michael writes Darrin and Samantha to wish them a Merry Christmas.