After it brings a snowman, A silk tophat reaches the focal point of a struggle between a stage magician and a group of school children. Realizing that newly-living Frosty will melt in spring till he takes refuge in a cold weather climate, Frosty and Karen, a young girl who he befriends, stow away on a cargo train. Little do they know that the magician is after themand also he wants his hat back!