He sees you when you're sleeping, he knows when you're awake, and it's best not to get on his bad side in this quirky thriller that's gained a loyal cult following. Harry Straddling (Brandon Maggart) was traumatized as a child, when late at night on Christmas Eve, he walked into the family living room and saw his father, dressed as Santa Claus, having sex with his mother. Now grown to adulthood, Harry is malignly obsessed with the holiday season, particularly the myths of Santa Claus; he works for a toy company, he sleeps in a Santa suit, his apartment is stuffed with Christmas memorabilia, and he spies on the neighborhood children, keeping track of who has been good and bad. Harry's insistence that the toy company maintain high manufacturing standards does little to endear him to his co-workers, and his brother Phillip (Jeffrey DeMunn) thinks Harry has started to go off the deep end. One day, Harry snaps, and after dressing up as Santa, he steals a truckload of toys and delivers them to a mental hospital as presents for the young patients -- all well and good. But when Harry is then confronted by a group of people who don't believe he's Father Christmas, Harry reacts with violence, setting off a murder spree. Terror in Toyland (which was first released as You Better Watch Out and is now available on video as Christmas Evil) also features Patricia Richardson, who makes her film debut in a small role more than a decade before she gained fame on the TV series
Home Improvement. Danny Federici of Bruce Springsteen's E-Street Band also has a cameo, as an accordion player at a community center dance. ~ Mark Deming, All Movie Guide