Albert soon causes mischief during their time together, such as turning a giant truck into a toy, replacing the Christmas tree into a drum set, and turning David's father's fake Christmas beard into a real one.
Santa decides to search for Albert, and realizes that he is slowly losing his Christmas power during his time with David, which can later transform him into a toy.
Albert begins helping David using his magic, but fails to realize how this is affecting him.
Eventually, Albert loses his powers, and decides to journey back to the North Pole, David comes with him to help him get to know the real world.
The two take shelter in a forest at night, but Albert transforms into a toy when David falls asleep, this reverts all the magic he had done before.