Things go awry when Annabelle, a fragile, timid porcelain doll who lives in a Victorian dollhouse, tries to share some of her Christmas traditions with best friend Tiffany, a sturdy, adventurous plastic doll who lives in a modern dollhouse.

Yet again Lucie loses her pocket handkerchief. In her search she meets Mrs. Tiggy-Winkle, a kindly, but strangely prickly washerwoman, and Mr. Jeremy Fisher who tells her of his eventful fishing trip. When seven little bunnies go missing Peter Rabbit and Benjamin Bunny find themselves caught up in a terrible battle between Mr. Tod and his unwelcome guest. Tom Thumb and Hunca Munca create havoc in the doll's house while Johnny Town-Mouse entertains...