The cartoon begins in an orphanage, where the orphans are all asleep in the dormitory, waiting for Christmas morning. Just then the clock chimes, and a puppy in the place of the cuckoo jumps out, slides down a ramp, and licks one of the orphans. The first orphan wakes up to shout to the others, "Merry Christmas, everybody!" They all jump out of bed and make their way to the hall, where they grab the toys from their stockings and get ready to play with them. However, they discover the terrible truth that the toys are old, worn, and already broken when they completely fall apart. The orphans are traumatized, and they burst into tears over having no other Christmas presents.