The film opens in the immediate aftermath of a crisis at the North Pole. Santa Claus, codenamed "Red One," has been kidnapped right before Christmas Eve, threatening the global delivery operation and triggering a Global Threat alarm. The North Pole’s High Command activates its top, though controversial, resource: Callum "Commander" Stone (Dwayne Johnson), a massive, highly disciplined Elite Operative specializing in high-risk recovery missions.

Commander Stone quickly determines that the kidnapper is a legendary tracker named Jake "The Ghost" Ryder (Chris Evans), a former asset of the North Pole security detail who went rogue years ago. Stone is forced to partner with Ryder, who is cynical, wisecracking, and primarily motivated by money. Their dynamic forms the core of this Action Comedy, as the rigid Stone must tolerate Ryder's chaotic but brilliant methods.

Ryder reveals that he didn't kidnap Santa, but was hired to track an item Santa was secretly guarding: the "Aether Compass," an ancient artifact capable of locating every single child on Earth. The real mastermind is Artemis Thorne (Lucy Liu), a ruthless and brilliant tech CEO who believes the compass, combined with Santa’s sleigh technology, holds the key to global surveillance and control. Thorne plans to execute the ultimate Christmas Heist.

Their pursuit takes Stone and Ryder across exotic, non-holiday locations—from the high-tech markets of Tokyo to the hidden catacombs of Venice—following the faint, rapidly fading energy signature of the stolen compass. Each confrontation is a high-octane Action Movie sequence, with Stone relying on brute force and military tactics, while Ryder uses infiltration, drones, and digital espionage.

The tension builds when they finally track Thorne to her Arctic fortress, which is disguised as a sustainable energy research facility. Thorne captures them briefly and reveals her plot: she plans to use the Aether Compass to permanently delete the entire Naughty List, thereby eliminating all moral constraints on the next generation and plunging the world into profitable chaos.

The climax is a massive confrontation inside Thorne's fortress. Stone engages Thorne’s highly advanced, specialized security team, while Ryder uses his hacking skills to disable the fortress's defenses and release Santa. The final battle is a visceral, hand-to-hand fight between Commander Stone and Thorne, who is revealed to be highly skilled in her own right, concluding with Stone successfully neutralizing the threat and recovering the Aether Compass.

The film concludes as Santa is safely returned to the North Pole just in time to save Christmas. Ryder, having found a sliver of holiday spirit, accepts a permanent position as the North Pole’s official "Head of Discreet Acquisitions," while Commander Stone finds a new appreciation for the messy, unpredictable nature of teamwork and family, ensuring this Holiday Action tradition is safe for another year.