In the middle of decorating for the holiday season, Sid accidentally destroys Manny's favorite decoration, the traditional Christmas rock (predating the Christmas tree). Sid, convinced by Manny that he is now on the Santa Claus's naughty list, takes off with Crash, Eddie, and Peaches (who's still a young child) for the North Pole to get back on the Santa's good side. When on the North Pole, Sid and his crew accidentally destroy Santa's Workshop. When Manny, Ellie and Diego, worried over Peaches' safety, arrive at the North Pole, they reunite to save Christmas. With the help of an army of mini-sloths, the characters make enough new toys for every child on Earth. Santa is then able to distribute presents on a worldwide basis after the flying reindeer Prancer and his family volunteer to pull his sleigh.