On 24 December, Santa prepares for his yearly journey at his Toyland castle in space. He plays the organ while his children helpers from all over the world sing. Meanwhile, in Hell, Lucifer instructs his chief demon Pitch to travel to Earth and turn the children of the world against Santa (or else he will, as punishment, eat chocolate ice cream).

In a busy marketplace, Pitch attempts to convince five children to "make Santa Claus angry": Lupita, a poor girl; Billy, the son of wealthy but negligent parents; and three troublemaking brothers. Pitch fails at convincing Lupita to steal a doll from a vendor, but succeeds in convincing the brothers to break a shop window. Santa's child workers alert him to these events.