Sophiana, an orphan girl who carries a cane, sets out to find Santa's toy sack (which is a magical source of toys since it was made from the baby Jesus' swaddling clothes), which was stolen thirty years previously by Krad as revenge after Santa stopped handing out Krad's coal to naughty children. She is helped in her quest by Paul Rocco, one of Santa's elves, Dart, a reindeer calf, Buster the fox, and his friend, Charlee the polar bear.
Renegade Animation, an animation company located in Glendale, California and known for the TV series Hi Hi Puffy AmiYumi and The Mr. Men Show, teamed up with Easy to Dream Entertainment to create Christmas Is Here Again. A small crew spent nine months on the principal animation, which was completed in mid-2006.
One of the songs in the film's soundtrack (as well as the film's working title) was "Who Stole Santa's Sack?"
Christmas Is Here Again premiered on October 20, 2007, as an official selection at the Heartland Film Festival. The following year, it received an Annie Award nomination for Best Voice Acting in an Animated Television Production (Madison Davenport as Sophiana). Additionally, in 2009, Christmas is Here Again was nominated for the Annie Award for Best Animated Home Entertainment Production. Colin Ford, the voice of Dart, was also nominated for a Young Artist Award in 2009 for Best Performance in a Voice-Over Role - Young Actor.