In the North Pole, a young reindeer is born with a peculiar trait: a shiny, luminescent red nose that glows. Named Rudolph, he quickly becomes the object of ridicule among his peers, leading him to feel isolated and ashamed. His father, one of Santa Claus's reindeer, tries to hide Rudolph's nose with a cover to help him fit in. Despite his efforts, during the Reindeer Games where young reindeer learn to fly, Rudolph's nose cover pops off, unveiling his glowing snout. The other reindeer mock him, and he is even barred from the Games, which deeply disheartens him.

Feeling outcast from reindeer society, Rudolph sets out from home to find a place where he'll be accepted. Along his journey, he meets Hermey, an elf who dreams of becoming a dentist rather than making toys, which is unheard of at the North Pole. Hermey is also an outcast because of his unique aspirations. Together, they find solace in their shared experiences and form a bond over not fitting in. They decide to be independent and flee to the wilderness where they encounter Yukon Cornelius, a prospector on the hunt for silver and gold, who joins them on their adventure as they strive to find acceptance for who they are.