Elisa, a friendly and imaginative young woman, lives in January Junction in a small house with her parents. Jack Frost has developed a huge crush on her.
One day, she decides to go out into the countryside. While Elisa is ice skating, Kubla Kraus cruelly breaks up the ice, causing Elisa to nearly go over a waterfall. Jack, who has been admiring her from afar, manages to save her by freezing the waterfall.
Later on in the countryside, Elisa meets a clumsy man who introduces himself as "Jack Snip" (who, unbeknownst to her, is actually Jack Frost himself in his human form). She befriends him and invites him to her house for dinner.
At dinner, Elisa is very concerned that Jack has no place to sleep, and asks her father if he can stay the night in the attic. Jack winds up living with the family and running a tailor shop out of their home.
They are soon joined by Jack's friends, Snip and Holly. Snip introduces himself to Elisa and her family as "Fernando Leonardi Kratsky Dopopolopolous", and Jack claims that Holly is a gypsy princess who "angered the magic gypsy baron and he, uh... made her tiny".
The next day, Elisa helps her new friends try to climb up Miserable Mountain in hopes of overthrowing Kubla Kraus, but they are not successful-- and even worse, Kubla, who is watching them from his window, becomes infatuated with her and is determined to make her his wife.
Later on, Elisa is delighted when Sir Ravenal Rightfellow, a knight who had left town as a child to serve under King Arthur, returns to January Junction. He drops by Elisa's house to have his cape mended by Jack, and tells her, "I'll call for you-- uh, I mean, for my cape-- tomorrow". Elisa is smitten!
Like the other residents of January Junction, we learn that Elisa and her family give "dream presents"-- that is, pass around an empty box and pretend the gift of their dreams is inside-- on Christmas because they cannot afford to give real ones. Despite that, Elisa seems to have a fun time celebrating with her family and friends.
Later on, Elisa meets Sir Ravenal in town, and much to her surprise, he presents her with a real Christmas present: a beautiful red rose. He asks her to accompany him to the Christmas dance that night, and she gladly accepts.
Unfortunately, on her way home, she is kidnapped by Kubla Kraus. But it's not long until Elisa's parents, accompanied by Jack, Snip, Holly, and Sir Ravenal, find out what has happened. They all race to Kubla's palace to save her.
Once she is saved, Elisa is relieved to be back with her parents, but is distraught upon realizing that Sir Ravenal has been wounded. Elisa and her family decide they must get him back home, and leave immediately, not seeming to notice that Jack, Snip, and Holly have been captured by Kubla.
Many weeks later, we learn that Sir Ravenal has been recovering at Elisa's house, and that they have since become engaged. Elisa mentions that she wants Jack Snip to be at the wedding, remarking that "it seemed like [she] knew him all [her] life". She wonders aloud what happened to him.
Later, we see Elisa and Sir Ravenal getting ready for their wedding ceremony. Unbeknownst to her, Jack Snip has returned to ask her father for her hand in marriage, not knowing about the engagement. When Elisa's father fills him in, he returns to his sprite form.
Jack frosts Elisa's bouquet before returning to the Kingdom of the Winter Clouds. Sir Ravenal, confused, asks "What was that?", and Elisa responds, "An old friend kissed the bride."
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