While transporting presents to children, a little baby inadvertently ends up inside Santa's bag. Upon returning to the North Pole, the infant’s presence becomes apparent; he’s named "Buddy" and entrusted to the care of "Papa Elf" (Bob Newhart). As time passes, "Buddy" (Will Ferrell) grows to his full size and struggles to adapt – failing to find a place anywhere. His adoptive father explains details about his biological parents, prompting him to travel to New York City in pursuit of his father, "Walter" (James Caan), who had previously been completely unaware of his son’s existence. Initially reluctant, "Walter" decides to assist his elf-like child after seeing an old photograph. "Buddy" isn't particularly skilled at anything, but he has a knack for making friends and spreading joy—qualities that become essential when Santa (Ed Asner) discovers his sleigh is unable to fly on Christmas Eve due to a deficit of holiday spirit. Will “Buddy” be able to inspire everyone – and evade the watchful Central Park Rangers? This is an enjoyable, lighthearted Christmas film that has stood up remarkably well over the past twenty years. The emotional depth is skillfully presented, the comedy appeals to people of all ages, and Caan balances the sometimes awkward enthusiasm displayed by "Buddy," with occasional gentle support from Mary Steenburgen. Even a budding romance develops for our kind-hearted character with “Jovie” (Zooey Deschanel), making this one of the stronger Christmas movies available.

Source on TMDB