When they arrive on Mars, Santa and the children build a factory to make toys for the Martian children. However, Voldar and his assistants, Stobo and Shim, sabotage the factory and change its programming so that it makes the toys incorrectly. Meanwhile, Dropo, Kimar's assistant, who has taken a great liking to Santa Claus and Christmas, puts on one of Santa's spare suits and starts acting like Santa Claus. He goes to the toy factory to make toys, but Voldar mistakes him for Santa and kidnaps him.