Smiley lived as one of the hunter wolves in Black Wolf's pack. While the pack was starving, Black Wolf sent Smiley and a shy vegetarian wolf named Specs out to hunt Niko's herd. After failing to catch and kill any reindeer, they go back to pack territory and bring the bad news to Black Wolf, who is angered by their incompetence. While they are discussing about what happened, a lost poodle named Essie finds the wolves' territory after mistaking them for dogs. Smiley and the other wolves are about to eat Essie, but Black Wolf decides to keep her alive after giving him the idea to kill Santa and the Flying Forces.
Smiley follows Black Wolf and the other wolves as they make their way up to Santa's Fell where they ambush the Flying Forces. While the chase is happening, Smiley finds a weasel named Wilma and and tries to catch her, but stops when he notices that the other wolves have cornered the flying reindeer and are about to attack them. The reindeer are saved by Julius the flying squirrel who convinces them to save Niko from Black Wolf.
Smiley and the other wolves watch as the flying forces save Niko by catching him on Santa's sleigh and try to escape from Black Wolf, who grabbed onto the sleigh. The wolves from below watch as Black Wolf falls to his death.
the Santa hat that Black Wolf wore drifted its way to the feet of the wolf pack as a sign of their leader's demise. After witnessing the shock of seeing their leader die, Smiley becomes the new pack leader and he along with the other wolves are driven out of Santa's Fell by the Flying Forces, never to return or be seen ever again.