An angel named Timmy with help of a dog and mouse tries to give a less fortunate boy and girl a teddy bear and doll for Christmas.
Timmy the angel has been given an important task, which is to deliver a beautiful, jeweled crown to the newborn Prince of Peace. With the exception of his cherish blanket, he believes he is unfit for the job because he is a bad flyer and frequently misplaces items. Also, who knows what he would face along the way? Along the way (guided by the light of a bright star), Timmy makes friends with Nicodemus the pig (Dom DeLuise), Titus the squirrel (Don Knotts), and Snowflake the baby bunny.
With Snowflake's help, Timmy managed to get through the forest. Just as he was crossing the river on a log bridge, he saw an ominous shadow beside Snowflake. "Wolf!" he cried. Snowflake dodges from the creature, which turned out to be a playful wolf baby. Just as the angel reached out to pet the wolf cub, the cub slipped and fell in the river! But as Timmy swam out to save the cub, the crown slipped out of his grasp. What to do? Save the cub or get the crown?
"Get the crown!" called out Snowflake. But Timmy managed to save the wolf cub. But the crown was swept away and lost forever. So a sad and discouraged Timmy made his way (along with Snowflake) to where the star's light is-the little town of Bethlehem. Snowflake warned Timmy that the baby might be cold when the two friends entered the stable where Baby Jesus was. So Timmy handed Mary his precious blanket to wrap Baby Jesus in for warmth. As a result, Jesus was revealed to be the newborn Prince of Peace. Last but not least, Timmy was correct in giving him his most valuable possession.