Thomas the Tank Engine is heading towards the small town called Ulfstead to greet the visitors. One December morning, Thomas announces that Christmas (Thanksgiving in North America) is near and promises to bring them plenty of letters and parcels. That night, however, an early snowstorm arrives and Thomas is given an extra mail van. Percy is unhappy that he cannot help, but his chance comes when Thomas is forced to give Percy his job in favour of another. Thomas is not pleased with the change, but Percy is delighted and sets off.
As he makes his way to the village, a fogman flags him down. He explains that the village is snowed under. Thomas and Percy work together to save the villagers, and Harold and Terence join in; Terence clears the snow, and Harold drops food supplies for them. They call the team the best Santa Claus the village has had, which confuses Percy. Thomas explains that Santa is a man who brings gifts through chimneys. Percy looks at his funnel, and though clearing up the confusion, Thomas remembers that he has left his parcels in a siding.
That night at the village, Henrietta is loaded up with paint pots and parcels and Toby sneaks her along with the villagers on board into the yard. When the engines wake up, they are surprised to find the sheds decorated with parcels. They all agree that it is the best Christmas they have ever had.
- This was the final Christmas episode until "It's Only Snow" in the show's sixth series, and also the show's last Christmas season finale until "Henry's Magic Box" in the fourteenth series.
- Oddly when the rest of the third series was repeated on CITV's Friday afternoon slot in 1993, this was the only episode that was left out.
- The celebrated holiday was changed to Thanksgiving in the US mostly for the Shining Time Station episode Billy's Party, omitting a 15 second reference to Father Christmas, which is unrealistic as Sodor is a British island. When the original 5 minute cut is presented with the US narration, it becomes out of sync with the picture and music towards the end.