Two pixies, Holly and Ivy are discovered hiding in a pink plastic teapot by Hayley, Josh's sister, they are hiding because all the pixies and elves who live in the Christmas-land village have been captured by Graham the gnome and sent to work in the sequin mine.
Josh and Hayley assist Tinsel and Glitter the only two elves still at liberty in their quest to free the captives, they are joined by an unlikely ally, Jake an adult who lives in a cottage on the edge of Danton wood, he is an unlikely ally because he is almost certainly the only adult who believes in Santa Claus. They raise a little army which mostly consists of fluffy toys which by the use of pixie dust they bring to life. The adventure ends with a pitched battle in a clearing in Danton wood and the surprising revelation of who Graham actually is.