In a Norway mountain village, children play under the shadow of a sinister mountain of the trolls. In one small cottage, a gnome named Bu (voiced by Danny Cooksey) is happily decorating his own home with Christmas decorations, aided by Mouse and birds. He explains to the viewers that the Christmas season doesn't really start for him until the arrival of the Christmas tree, at which point two girls and their father return to the cottage dragging a tree on a sleigh. When the humans set the tree up in their home below, the uppermost branches are pushed through a hole in the attic to form a miniature tree for the gnome. He quickly decorates the tree, topping it with a minuscule Bible.