A little boy who has recently become the littlest angel in heaven is unhappy and homesick. He drives the other angels to distraction with his piercing whistle and slipping halo. Finally, he is sent to see "an angel of peace." The littlest angel dreads the meeting, postponing it as long as possible.

To the littlest angel's surprise, the Understanding Angel really does understand how he feels and responds to his wish for the little box of treasures he left under his bed at home. With his treasures to keep him company, the littlest angel is happy and well behaved, to the delight of the other angels.

When Jesus is born, the littlest angel thinks long and hard about the proper gift for the Christ Child. He finally decides on his little box of treasures, which includes such things as a butterfly, a bird's egg, and several stones. However, as he approaches the Christ Child, he is striken with fear that his gift is not good enough, "...that instead of honoring the Son of God, he had been most blasphemous."
He weeps bitter tears and attempts to run away. Then, God speaks and says, "Of all the gifts of all the angels, I find this small box pleases me most." The box began to glow so brightly that the other angels can't see. As the story ends, only the littlest angel sees the box rise to the sky and become the star of Bethlehem.