The children at the neighboring school begin throwing trash over the wall, and when Sara tries to get them to stop, a bully steals Hoppity. Later, a kind boy named Jimmy returns the doll to Sara.
Sara teaches Shaggy to fetch, and the dog is so pleased with himself that he retrieves the meat from Aunt Mathilda's shopping cart, although he later redeems himself by finding Mathilda's gloves.
Sara and Hoppity discover broken toys in the cellar of a local store. The manager allows them to take the playthings back to the toy hospital, where they're mended and distributed to sick children.
When Mummy takes Sara to a local store to see Father Christmas, Hoppity falls into his bag of presents and winds up in the clutches of another little girl.
Aunt Mathilda proudly arrives for tea in a new dress that she knitted herself. When she takes a nap, Hoppity accidentally rips her skirt, and Sara gets blamed.
Georgie destroys his stuffed dog and brings it to the toy hospital for repairs. When he returns to pick it up, Sara sics her dog, Shaggy, on the unsuspecting lad.
When Hoppity vanishes in the department store, Sara goes looking for him. Unfortunately, the store closes while she's searching, and the pair find themselves locked in.