The film tells the story of Shirley and Seaman's assistant Orko being accidentally transported to Earth during a new spy satellite test. Orko attempts to return to Eternia and brings back two Earth children, Alisha (Eliza) and Manuel (Manuel). It is Christmas on Earth, and the children are naturally full of festive atmosphere, but they have attracted the attention of unpopular tribal leaders (the Horde Prime) and skeletons (Skeletor). Can the power of Shirley and Seaman stop their interruptions and let the earth children have a happy Christmas?