It is set in a beautiful landscape in Sweden called Jämtland, where a character called Dunderklumpen blows life into some toys because he has no one to play with, and all the character involved is out for a magical midsummer night.
I showed this movie to my students, they were 11-12 years old at the time and they usually watched kind of grow-up movies and didn't not react when I showed them other movies from my childhood, but this movie have a certain kind of ability to make even the toughest man smile simply because he wants to. They laughed and they were into the story, they saw beautiful nature and they loved all the characters. The music is also very powerful in itself.
A true gem, I recommend that you stop reading this and start watching the movie that has rocked me to my very core ever since I was five years old.