As the angels discuss George Bailey, we see his life in flashback. As George is about to jump from a bridge, he ends up rescuing his guardian angel, Clarence - who then shows George what his town would have looked like if it hadn't been for all his good deeds over the years.

On Christmas Eve, an orphaned baby crawls into Santa Claus's sack at the sight of a teddy bear, and is unwittingly taken back to the North Pole from an orphanage.

On Christmas Eve, New York City Police Department (NYPD) Detective John McClane arrives in Los Angeles, hoping to reconcile with his estranged wife, Holly, at a party held by her employer, the Nakatomi Corporation.