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It's Christmas Day and Sooty and the gang are exciting about all the things they are going to be doing. After opening their presents, Matthew and Sooty play "Home is where the Heart is" on Matthew's new set of hand bells. Matthew feels rather emotional after that, so Richard Cadell the Magician comes along dressed as Father Christmas to cheer them up. Later Sooty starts to feel a bit upset when he thinks of all the children will have to be spending Christmas in hospital instead of at home, so he and Matthew go to Great Ormund Street Hospital to cheer them up. When Sooty and Matthew get home, Soo and Sweep are crying because all the tickets for the Bernie Clifton show are sold out and the Christmas party has not been organised. Luckily Sooty comes to the rescue with his new magic wand and magics them all into the audience of the show. Bernie Clifton also helps to get the Christmas party going instantly with his new magic balloon.