Candy Claus and her brother are two dolls that were made as gifts for Santa. Louis Corbo (see character guide) sneaks the gifts onto Santa's sleigh. The boy doll was taken by Oh-No, a mad scientist that can fly. Mrs. Claus discovers an undelivered gift and they open it. Their love combines with their magic and Candy Claus turns into a human. Meanwhile, Oh-No names the other doll "Hey-You" but constantly neglects him. Oh-No does not like the attention that Candy is getting, so his fast movements cause everybody to think that Candy is causing problems. A factory robot named "Shad-O" is assigned to follow Candy everywhere. Candy goes for a long walk and gets buried in snow. Santa finds her and they build a Candy Cane factory. She raises her own fleet of reindeer. Candy is also given a gift which she is about to unwrap. What is this gift? What happens to Hey-You? Will they find out that Candy Claus is innocent? You can't tune in for the next episode; No sequel was made.
Produced by Yoram Gross of Flying Bark Productions. Made for a shelved program called "Santa's Family", and one of the sponsors is the American Lung Association. In the original ending of Candy Claus, the gift is a beautiful computerized bracelet. A simple question "Who Am I?" and the computer tells her her name and her family including her brother. Oh-No disappears with Hey-You. Candy vows to find her brother, but this ending was cut when the program was canceled.