Twelve years have passed since Scott Calvin took on the mantle of Santa Claus, redeemed himself to be good, solved The Santa Clause Mysteries and married Carol Newman, who has now become a teacher in the North Pole. On Christmas Eve, she tells a group of young elves a story from her life with Scott while expecting their first child. Scott invites his in-laws, Sylvia and Bud Newman, to the North Pole, along with Scott's former wife, Laura, her husband, Neil, their daughter, Lucy, and Scott's son, Charlie. Meanwhile, he is summoned to a meeting of the Council of Legendary Figures, consisting of Mother Nature, Father Time, the Easter Bunny, Cupid, the Tooth Fairy, and the Sandman, concerning the behavior of Jack Frost, who is jealous that he has no holiday or special occasion in his honor. Because he has been promoting himself during the Christmas season, Mother Nature suggests sanctions against him. When Scott says he is dealing with how to get the in-laws to come without revealing that he is Santa, Jack Frost negotiates a light sentence of community service at the North Pole, helping Scott and the elves put up various Canadian-themed paraphernalia, as Carol's parents believe Scott is a toy-maker in Canada, which Scott agrees.