La Posada Mágica is based on the traditional Latin American Christmas observance in which community members make a procession through their neighborhood to commemorate Mary and Joseph's search for lodging. The play takes place on Christmas Eve of a year when 15-year-old Gracie has lost her baby brother. Because of her loss, she is disconnected from the holiday, and shuns her family's attempts to celebrate. But when the posada of her neighbors arrives at her home, she is swept along by their enthusiasm. On the way, Gracie blows out each procession candle, sending the makeshift march off course and onto an amazing journey. By its end, she and the others have re-discovered the power and magic of Christmas.