The Smurfs come to the rescue of two children and their grandfather when an evil mysterious stranger shows up and causes their sleigh to turn over, forcing them to seek help and inadvertently bring Gargamel in on the action.

The evil knight Torchesac, who is at the service of the sinister lord of La Mortaille, gets a very powerful magic flute and uses it for evil purposes. Johan and Pirlouit, assisted by the magician Homnibus, travel to the land of the Smurfs, the only manufacturers of this sort of instrument, to get a new one and battle the usurpers.

Baby Smurf is all set to enjoy the wonder and delight of her very own first Christmas. Then, the evil Chlorhydrus puts a nasty spell on Mr. Nicholas to keep him from spreading his holiday cheer. Fortunately, the resourceful Papa Smurf isn't about to take this sort of thing sitting down. Sending out a call for hrlp, he ralies his little blue buddies to help break the mean-spirited spell. Now, they're embarking on a Smurfish campaign to ensure that the joyful message of Christmas cheer and goodwill once again rings across the land!