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A Christmas teddy bear made by Santa comes to life and yearns to belong and bring happiness to one small child.

On Christmas Eve, Santa returns to visit the multicolored teddy bear that he had made by hand the year before and finds him well worn and well loved.

Peef the bear is left behind when his best friend goes to school, but when the boy tries to become popular by not being himself, Peef understands and comforts him.