On a frozen winter's night in a remote northern fishing village, a young boynamed Nicholas is orphaned when his father is drowned at sea. His mother bravesthe raging storm to get medical help for Kati, the younger sister, and leavesNicholas to sit by her bedside. When the villagers arrive at the cottage inmorning, he learns that Kati has died of a fever, and his mother is killed by afalling tree as she passes through the forest. The fishermen's wives gather to discuss how Nicholas will be cared for, anddecide that if each family takes him in for one year, he will reach an age tocare for himself. So it is that Nicholas moves in with his firstfamily-for-a-year on Christmas Eve. He hides in a closet and cries himself tosleep. The next day, Christmas, is sorrowful for Nicholas but brightened by the companyof the family's children, two girls and especially Otto, who becomes Nicholas'life-long friend. Nicholas has learned to carve by watching his father repairfishing gear and as his father's knife is his only inherited possession, he usesit to repair Otto's broken Christmas toy. When a year passes and it's time for Nicholas to move on to another family, hecarves a doll and a chair for the girls and a toy sleigh with beautiful carvedrunners for Otto. The children are so pleased with the toys that Nicholaspromises, "e;Next year, I'll know how to make better toys and I'll make you somenext Christmas, too."e; That is how every home where Nicholas the wandering orphanstayed, he left gifts for each child and each child in every family came toexpect a Christmas gift from Nicholas. The story proceeds to weave an incentive for hanging the first Christmasstocking; for designing the first red suit; for replacing his old horse withreindeer; for resorting to go down the chimney to leave gifts; for the occasionof the first Christmas tree; and other favorite legends and traditionssurrounding Christmas.
