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Gabby Messinger, a Guardian Angel who has trouble following the rules and is known for meddling in the love live’s of others, is tasked by the Angel Michael to help the town of Angel Falls find its Christmas spirit again.

Desmond Doyle is devastated when his wife abandons their family on the day after Christmas. His unemployment, and the fact that there is no woman in the house to care for the children—Evelyn, Dermot and Maurice—make it clear to the authorities this is an untenable situation. The Catholic Church and the Irish courts decide to put the Doyle children into Church-run orphanages.

George Bailey has spent his entire life giving to the people of Bedford Falls. All that prevents rich skinflint Mr. Potter from taking over the entire town is George's modest building and loan company. But on Christmas Eve the business's $8,000 is lost and George's troubles begin.

Second chances start when a hardened criminal crosses paths with a precocious little girl who is helped by an angel to change hearts during the holiday season.

Good Samaritan Sarah Fitzpatrick has a fatal accident just before Christmas, and finds herself in the lobby before the gates of Heaven. Certain that she will be let in, she is shocked to find that her name is not on the reservation list. However, she is granted the chance to return to Earth as an "angel in training" with the requirement to help a soul in need. Sarah has the 12 days before Christmas to secure her place on the list leaving her in the race for her after-life.

Anne Shirley, an orphan, is fostered by farmer Matthew Cuthbert and his sister Marilla, who were expecting a boy to be sent them to help with their farm work. They accept Anne, who quickly endears herself to them and to the local villagers.