Ten-year old Jess is devastated after her friend Bobby moves out of town. Her Aunt Millie comes to visit and decides to tell her a story about Katie, who is also ten years old, who wanted to ice-skate. While practicing on an outdoor rink near her home, Katie is befriended by Otto Brewer, a former Olympic skating champion, who offers to teach her "proper skating," and under Otto's tutelage, Katie blossoms into a magnificent skater. However, Katie is devastated when her father loses his job and the family is forced to move to the big city. Meanwhile, in the North Pole, Santa Claus and his Christmas elf are celebrating the birth of Blizzard (Whoopi Goldberg), a baby reindeer born to Blitzen and Delphi. It quickly becomes apparent that Blizzard possesses all three magical reindeer gifts: the ability to fly, the power to make herself invisible, and the gift of empathic navigation - being able to see with her heart. Using her empathic ability, Blizzard feels Katie's sadness and flies to Katie's home to investigate. Despite the rigid rules of the North Pole, Blizzard helps Katie learn that the value of true friendships is that they never truly go away. However, by breaking these rules, Blizzard must face the possibility of banishment at the hands of Archimedes, Santa's strict head elf. Only true friendship can save her now. Katie's former bully Erin becomes a humble friend after being saved from drowning in a thin-iced frozen pond by Katie, with Blizzard's help.