I remember parts of a christmas movie from when I was a little girl in the 80's, but I can't remember what it was!!

It is about the elves at santas workshop and one of the elves is not good at his job! He accidentally shrinks santas red gift bag! He runs away and ends up helping rudolph save christmas I think...

Can anyone help me? I think it was done with puppets or muppets or something!

I think you are thinking of Rudolph, the Red Nosed Reindeer. It was made for TV in the 1960s, but is replayed every year. The elf Hermey and Rudolph both leave because they have made mistakes and they end up in The Land of the Misfit Toys. In the end, they save Christmas when Santa's sled in fogged in.

Thank you!! :)

Oh no, I just watched rudolph the rednosed reindeer and that isn't it! :( thanks for trying! Its more like muppet type puppets, not wooden puppets. And the elf shrinks santas red bag... anyone know?