Midnight, a nasty little goblin, delights in teasing animals, causing chaos and distress. Seeking refuge from their anger, he hides in a log and finds himself in a home with kind children. Touched by their innocence, he secretly helps them and their mother, becoming a benevolent presence. On New Year's Day, the log is tossed into the fire, transforming Midnight into a radiant golden flame. Now a force for good, he warms the children, brings joy to birds and rabbits, and restores the squirrels' lost nuts, spreading happiness and turning each day into a "Happy New Year" for everyone he encounters.