Sam the Snowman narrates the story, which takes place in Christmastown at the North Pole, four years before the big snowstorm which almost cancelled Christmas. Donner, Santa's lead reindeer, and his wife have a new fawn named Rudolph. They are surprised to see that he has been born with a glowing red nose. When Santa arrives, he warns Donner that Rudolph will not make the sleigh team because of his nose. So, Donner covers it with mud so Rudolph will fit in with the other reindeer.