It's Christmas and Paddington eagerly opens his presents. When he notices a bone in his Christmas Pudding, everyone fears he has eaten one of Mrs. Bird's lucky sixpences. Later, everyone opens the presents Paddington had given them.

While returning home from the movie theater, Paddington attempts to recreate the scene with Gene Kelly in Singin' In The Rain by singing and dancing in puddles. In the process, he stirs up a lot of trouble.

Paddington is told by the authorities that he must enroll in school, which of course is the start of trouble.

Paddington worries about not having enough money to buy a present for Mr Brown's birthday, so he attempts to be a one-man band. As usual, things get out of hand.