"Once a bright and cheerful community, Toyland is in great danger from the terrible Barnaby (Richard Mulligan) and his scary creatures who live in the forest of the night. They are trying to turn Toyland into a world without toys.

The only person who can save Toyland is Lisa (Drew Barrymore), a little girl from Cincinnati who lands in Toyland on Christmas Eve. But since Lisa, a very "grown-up" little girl doesn't believe in toys, she needs special help from the wise but impish Toymaster (Pat Morita), the dashing and gallant Jack Nimble (Keanu Reeves), and the mother-of-many-children Mrs. Hubbard (Eileen Brennan). Together they muster an army of toy soldiers and teddy bears to drive the villainous Barnaby and his nightmare creatures out of Toyland. "