Fred Claus (Vince Vaughn) is the unknown older brother of the world's favourite man, Saint Nicholas or Santa Claus (Paul Giamatti). Fred is resentful and has become a repossession man, the very opposite of saintly brother. When he has a run of bad luck, Fred reluctantly asks Nicholas for help. Although Mrs. Claus (Kathy Bates) is far from keen on the idea, Nicholas offers Fred a job at the North Pole, in the toy workshop. Fred proves to be a disaster. He upsets the elves and creates general mayhem until it seems as if, this year, Santa will not have enough toys ready to deliver.