It is just a couple of days before Christmas at Bird Scratch Ranch. Twin goats Hans and Greta wander around the farmyard taking in all the excitement of the other animals as they prepare for Christmas. They are confused and do not understand what all the excitement is about. They have never heard of this thing called Christmas or what presents are. There is even talk of someone named Santa Claus that they have never met.

As they head to the barn to ask their mom about this Christmas thing, they run into Ben the guard dog. When they tell him that they do not understand what Christmas is all about, Ben tells them that back when he was a young pup, he did not know what it was either until his mom told him a story about Christmas. Though he does not have time right now, he promises to tell them the story on Christmas Eve.

On Christmas Eve, Ben sets Hans, Greta, and some of their friends down in the barn and tells them the story his mom once told him. The story of the very first Christmas.