Billy's present is a big present that Santa Claus delivers to Billy's house one Christmas. According to the elves, it is "wrapped in candy-striped red with a number-seven holly-green bow."
At the communications room, one of the elves informs the others that they had finished wrapping the last present, but another elf is annoyed to hear that they used a number-seven holly-green bow when they are so close to liftoff. The first elf also mentions that the present is going to Grand Rapids, Michigan, Hero Boy's town.
While trying to find a way back to the North Pole Center, Hero Boy, Hero Girl and Billy end up in a factory where they see the present mentioned earlier going down the conveyor belt. They read the information on it and find out that it is going to Billy, so Billy gets on the conveyor belt and grabs it with Hero Boy and Hero Girl following. They all find themselves going down a big slide and ending up on top of a big pile of presents.
Billy shakes his present to figure out what is inside and claims that he knows what it is, which he wanted his whole life. However, as he was about to open it, Hero Girl finds a note on it saying, "Do not open until Christmas."
While the bag of presents was being carried by a pair of zeppelins, Know-It-All grab's Billy's leg, so Hero Boy and Hero Girl try pulling him out. They asked him to give them his other hand, but he did not want to let go of his present. They were still able to get Billy free anyway, though.
The children are soon rescued from the bag, but Billy is hesitant to let go of his present until one of the elves assures him that it will be in good hands.
Later, after Billy gets dropped off at his house, he finds that the present has been delivered, so he walks outside and, just as the train was leaving, calls out to Hero Boy and Hero Girl that Santa has been to his house.
It is never revealed in the film what was actually inside the present.