Rudolph is the young fawn that Santa's main reindeer, Donner, and his wife have named. When they learn he had a bright red nose at birth, they are shocked. To make Rudolph blend in with the other reindeer, Donner first tries to conceal his nose with mud and then applies a false nose. The next spring, Rudolph attends the reindeer games, when Santa scouts the fresh fawns for future sleigh work while they are learning to fly. When Rudolph runs across Clarice, a doe, she tells him he's cute, which makes him take off. Rudolph's prosthetic nose blows off as he is having fun with the other bucks, leading to the other reindeer making fun of him and Coach Comet kicking him out.
Rudolph meets Hermey, a misfit elf who left Santa's workshop to pursue his dream of becoming a dentist and befriends. They both meet Yukon Cornelius, a prospector who has dedicated his life to finding gold and silver. Following their escape from the Abominable Snow Monster, all three arrive at the Island of Misfit Toys. Unwanted or unwanted toys live there with their king, King Moonracer, a winged lion who delivers the toys to the island until he finds homes and adoptive kids. After permitting them to spend one night on the island, the monarch instructs them to ask Santa to locate them places to live. Fearing that his nose may put his pals in danger, Rudolph walks off by himself.
After some days, Rudolph—who is now a young stag—returns home to discover that Clarice and his parents have been looking for him. The Abominable are being held hostage in their cave, which is where Hermey next goes. Up until the monster uses a stalactite to knock him down, Rudolph tries to save Clarice. Eventually, Hermey and Yukon arrive with a scheme to support Rudolph. After Yukon knocks the Abominable unconscious, Hermey uses a pig noise to entice the monster out of the cave and extracts his teeth. Driven back over a precipice by Yukon, the toothless monster falls down.
Upon their return home, Rudolph, Hermey, Clarice, and the Donners are greeted with an apology from all. Yukon reappears with a domesticated Abominable trained to trim a Christmas tree. He explains that their lives were spared by the monster's ability to bounce. As Christmas Eve approaches and everyone is enjoying themselves, Santa declares that he must cancel the holiday due to a forecast snowstorm. After becoming blind, he asks Rudolph to drive the sled with the reindeer's brilliant nose. After Rudolph agrees, Santa delivers the toys to kids on the Island of Misfit Toys, where they make their first stop.
