Mr. Twitchell, a greedy old businessman, has invented Summer Wheeze: a spray that instantly removes snow and slush! Now Holly has to keep Frosty from melting, and convince everybody that snow's actually a good thing.

A discarded silk top-hat becomes the focus of a struggle between a washed-up stage magician and a group of schoolchildren, after it magically brings a snowman to life. Realizing that newly-living Frosty will melt in spring unless he takes refuge in a colder climate, Frosty and Karen, a young girl who he befriends, stow away on a freight train headed for the north pole. Little do they know that the magician is following them, and he wants his hat back!

Years have passed since Frosty left for the North Pole, but his promise is kept when he hears news of the first snowfall of the season, and decides to return.

Frosty the Snowman goes where he is needed most, and the town of Evergreen sure needed a visit. Mr Tinkerton, the mayor, runs a tight ship, and there's no room for talk of magic or any other such nonsense. But, when Frosty the Snowman blows through town, he shows the town's children that magic is real. Tinkerton's sons, Charlie and Tommy, along with their friends Sarah and Walter, want to spread the word about Frosty's fun-loving, magical antics but meet resistance from Evergreen Elementary's dastardly principal Hank Pankley. In the end, good wins out, and all the citizens of Evergreen happily learn that magic is real and fun is for everyone!

Winterbolt is trying to make the North Pole his evil wonderland, and it is up to Frosty the Snowman, Rudolph the Red-Nosed Reindeer and others to stop him.