Christmas Eve. A poor orphan boy trudges through the snow, pathetically. He finally arrives at his miserable cabin. While he is crying, Santa arrives and, singing the title song, offers to take the boy to his workshop. They arrive, and the toys go wild. He plays with a few toys. A candle falls off the tree and starts a fire. The toys try in vain to fight the fire; the boy hooks up a hose to a set of bagpipes and takes care of it.
You can now watch The Shanty Where Santy Claus Lives online on the following streaming providers in the United States.
| Visual Effects | Norm Blackburn | Animation |
| Directing | Rudolf Ising | Director |
| Production | Rudolf Ising | Producer |
| Visual Effects | Rollin Hamilton | Animation |
| Production | Hugh Harman | Producer |
| Sound | Frank Marsales | Original Music Composer |
| Directing | Hugh Harman | Director |
| Production | Leon Schlesinger | Producer |
