Part 1 – Make Festive Wrapping Paper
To begin, head to the Resident Services plaza and talk to Jingle, the Black-Nosed Reindeer. He’s as jolly as can be, but as he’ll explain, he’s forgotten his wrapping paper! Luckily, he’ll give you a DIY Recipe for some Festive Wrapping Paper, and ask you to craft three.
Festive Wrapping Paper requires 1 Red Ornament, 1 Blue Ornament and 1 Gold Ornament. Since Jingle wants you to make three, that means you’ll need three of each colour!
You can get ornaments from the decorated Spruce Trees on your island. Shaking even a single Spruce Tree will give you effectively an infinite supply of Ornaments, but while they won’t drop an ornament every single time, decorated Spruce Trees will never drop Wasp Nests!
Once you have three of each colour, head to a DIY Workbench and craft the three Wrapping Papers. In return, Jingle will give you some Toy Day Stockings.
Part 2 – Deliver Presents
Since the Wrapping Paper task was such a success, Jingle will now ask you to help him deliver presents to the residents of your island, and give you a Magic Bag. The Magic Bag will be with you until 5am, which is when Jingle departs the island as well. You’ll have until then to give a present to each resident on your island, where Jingle will give you a reward!
The Magic Bag is counted as a Tool: you’ll need to be holding it when talking to a resident so that you can give them a present. Some villagers will be so thankful, they’ll give you a Toy Day present of their own! These will be the same toys that were available in Nook’s Cranny over the holiday season, however they may not be in the same colours as the ones from Nook’s!
If a resident is currently doing something, like fishing, you’ll need to wait until they’re not doing it anymore before you can give them a present.
Once you’ve delivered gifts to all eight residents, head back to Jingle and tell him “I’m all done!”. He’ll take the Magic Bag off your hands (aww), but he’ll give you a gift in return: a DIY Recipe for a Gift Pile, and a Toy Day Sleigh (which you can sit on!)
And that’s it, you’ve saved Toy Day!
The Gift Pile requires 3 Red Wrapping Paper, 1 Wooden-Block Toy and 1 Cardboard Box to craft. Two of these items are ones that you may not be able to get immediately. The Red Wrapping Paper is found at Nook’s Cranny, but they only offer two colours at once, and the Cardboard Box is something you can only get from Nook’s Cranny, Balloons or in the Recycling Box in Resident Services the day after a Villager has moved to your island.
Luckily, the Wooden-Block Toy can be crafted using 3 Softwood.
As a reminder, you’ll want to put up the Toy Day Stockings you got from Jingle as a reward for helping him out with the Wrapping Paper. Leave them in your home overnight, then on the next day, interact with the stockings and you’ll get Jingle’s Photo!