A baby is found by wood nymphs in the forest of Burzee. They raise him as their own and give him the name Neclaus. When he grows up, Neclaus has to leave the forest so he makes a home for himself in the laughing valley of Hohaha, where he lives amongst humans for the first time. He discovers there that many children are very poor and neglected so, to cheer them up, he whittles wooden toys as gifts. Eventually he makes presents for all the children and so the story of Santa Claus is born.