- Directors: Michael Lembeck
- Producers: Robert F Newmyer, Brian Reilly, Jeffrey Silver
- Writers: Leo Benvenuti, Steve Rudnick, Don Rhymer, Cinco Paul, Ken Daurio, Ed Decter, John J Strauss
- Genres: Comedy, Family, Fantasy
- Actors: Tim Allen, Elizabeth Mitchell, David Krumholtz, Eric Lloyd, Judge Reinhold, Wendy Crewson, Spencer Breslin, Liliana Mumy, Danielle Woodman
Eight years have gone by since Scott Calvin first took up the Santa suit, and became subject to The Santa Clause. Now Santa is at the top of his game at the North Pole and could not be happier, at least until Bernard and Curtis, the Keeper of the Handbook of Christmas break the news; there is another clause-the “Mrs. Clause”.
Santa/Scott is now pressed to get married before the next Christmas Eve, or the clause will be broken and Christmas will die away. At the same time, Abby the Elf delivers news that is more distressing; Santa’s own son Charlie is on the naughty list. Scott must return to his home to search for a wife and set things right with Charlie. He even brings this up when visited by the Council of Legendary Figures consisting of Mother Nature, Father Time, Cupid, the Easter Bunny, the Tooth Fairy, and the Sandman.
To cover for Santa’s prolonged absence, Curtis helps Santa create a life-size toy replica of Santa. However, this larger-than-life legalist cannot find any grace or slack in his plastic heart for minor infractions by children the world over, having followed the Handbook too strictly. Toy Santa takes control of the North Pole with a duplicated army of life-size toy soldiers. He thinks that everyone is naughty, and he plans to give the entire world lumps of coal.
Curtis flies in to deliver the dreadful news about the Evil Toy Santa’s coal binge. However, Scott has used up the last of his magic wooing Carol and Comet has eaten too many chocolate bars. With a little help from the Tooth Fairy, Santa and Curtis return to the North Pole. Toy Santa wastes no time in subduing Scott, but Charlie and a now-believing Carol spring him free by summoning the Tooth Fairy to fly them there. Scott goes after the Toy Santa, who has already left with the sleigh, riding Chet, a reindeer-in-training, and they both crash back into the village. With an army of elves, Bernard, Scott, Carol and Charlie lead a snowball war to overthrow the toy soldiers. Toy Santa is reduced to his normal six-inch height, Carol marries Scott in a ceremony presided over by Mother Nature herself, Scott transforms back to Santa, and Christmas proceeds as it always has. In addition, Charlie and Scott reveal the truth to Lucy, Charlie’s younger half-sister (the daughter of Laura and Neil) about Scott being Santa Claus so she is now in on the secret.