The Sandman makes his first appearance at a meeting of the Council of Legendary Figures. He is asleep for most of the meeting, but is woken up by Mother Nature to vote on a name change for the Tooth Fairy, on which he votes no, apologizes, then goes back to sleep.
The Sandman's role is expanded a bit in the sequel. Sandman attends an emergency meeting of the Council, where Jack Frost is accused of trying to upstage Santa, sleeping through most of it.
Later, he accompanies Santa to pick up his in-laws, Bud and Sylvia Newman, posing as Santa's business associate, Sandy. After they get into an argument, he throws sleeping dust on them because he couldn't listen to them arguing, then he goes to sleep in a chair after Santa tries to get him to help him get Bud and Sylvia out to the car.
Later, he is summoned to the North Pole by Charlie to finish making all of the toys in time for Christmas. He watches Jack Frost reform, turning good after a hug from Lucy Miller.