The poor old shoemaker and his wife are facing starvation. Yet they extend their kindness to a freezing elf who comes in from the cold, and the three share coffee and the last, rock-hard donut in the cupboard. After the shoemaker and his spouse make their way to bed, the little elf returns with a mini-army of his elf associates to return the favor by fixing up all the shoes. There is quite a bit of time spent on the elves and their antics, and even a pair of Hebrew elves are seen making shoes. The shoemaker wakes to find his shop brimming with lovely new product. Soon he and his wife are able to amass a handsome fortune with the shoes, and they even receive a visit from the Queen. Afterward, the old shoemaker and his wife decide to compensate the elves, who are treated to a feast consisting of coffee and donuts for all.