Buddy was born to Susan Wells and Walter Hobbs. She put him up for adoption after he was born due to a unexpected pregnancy. Walter never knew he had a son. Susan soon died and baby Buddy was in a orphanage (for a year) for a little while.
One Christmas Eve baby Buddy witnessed Santa Claus coming down the chimney and eating cookies. Buddy spotted a teddy bear and crawled into Santa's sack. At the North Pole Buddy crawled out and surprised Santa and the elves. Papa Elf took him and raised him as his own child. He grew up a elf.
Buddy found out as an adult that he was human. His mother had given him up for adoption after his birth, and his father never knew that he was born. His mother soon died, while his father moved to New York City. He wanders everywhere until he finds Walter, finding out that he had remarried and had a son named Michael. Buddy is happy until Walter yells at him during a meeting in his office. He runs away and hides in Central Park. He meets Santa Claus who is trying to fix his sleigh. Buddy fixes the engine and saves Christmas.
Eventually, Buddy marries his lover, Jovie, and they have a daughter named Susie. They visit the North Pole often. His father writes a book about him, titled Elf.