On Christmas Eve, Grandpa Woolly recounts the Nativity story to his grandchildren, focusing on the role of three young sheep who encounter the 'greatest shepherd of all'. The narrative unfolds as Grandpa Woolly draws parallels between the children and the sheep, guiding them through the events of Jesus' birth. The story emphasizes the shepherd's care and the significance of the event, framed within a cozy family setting.

This book is presented as a heartwarming Christmas story that retells the Nativity through the eyes of young sheep, connecting them to the children listening to the tale. The narrative aims to convey themes of care and the significance of Jesus' birth in an accessible way for a young audience. The framing device of a grandfather sharing a story with his grandchildren adds a layer of familial warmth. The book likely appeals to families seeking faith-based holiday stories.