Six year old Susan has lost her faith in Santa Claus` existence. But someone will give her back the Christmas faith and illusion when she visits a department store on 34th street.

Major New York department store Cole's risks bankruptcy unless it smashes the Christmas sale. Its major Santa campaign is under threat when their drunk man crashes the reindeer sleigh. PR executive Dorey Walker snatches from the crowd a man who looks just the part and accepts, calling himself Kris Kringle. However he insist to be Father Christmas, the real Santa.

Only Dorey's daughter Susan (6) really believes him, but after Kris knocks down an attacker in self-defense on the street, sent by the store's ruthless competitor Jack Duff, he maintains his claim in court. Rather then letting him rot away in a mental institution, Dorey's fiance, attorney Bryan Bedford, take son DA Ed Collins with creativity and sympathetic judge Harper. A special reward follows mysteriously.