Rudolph and the Gang catch the Toy Taker and reveal his true identity. He's actually a teddy bear named Mr. Cuddles who is trying to save the toys from ending up thrown away by their children. Santa tells him that Steven (Mr. Cuddles's owner) has been looking for him. Rudolph and Hermie take him to Castaway Cove and Queen Camilla sees him up. Rudolph learns that he doesn't need to have a normal nose. He's special just the way he is. Everyone prepares for Santa's big take off and Hermie has a date with the Tooth Fairy. Santa takes Mr. Cuddles home and gives him to Steven's daughter. Santa then takes off into the night.
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