Toy Day is a December event where you help Jingle the Black-Nosed Reindeer give gifts to your residents.
Talk to Jingle to get DIY
Toy Day is on December 24, and Jingle will be on your island that day. Talk to Jingle to get a Festive Wrapping Paper DIY, which requires ornaments that you can get by shaking decorated trees on your island.
Craft 3 Wrapping Papers
Make 3 Festive Wrapping Paper and give them to Jingle to get Toy Day Stockings and a magic bag. Be sure to hang up the stockings on a wall in your house.
Give Gifts to your Residents
Equip the magic bag if it isn't already (you can hold it like a tool) and talk to each of your villagers to give them a gift from the bag. You can check on the bag in your inventory to see how many toys are left, if you aren't sure if you gave a gift to all of your villagers.
Make sure to hand out all the gifts before 5AM on December 25.
You can optionally wear the Santa Hat, Santa Coat, and Santa Pants while giving out gifts, for a different reaction from villagers. You can buy the Santa clothes from Able Sisters.
Get DIY and Sleigh
Once you have delivered all the gifts and the Magic Bag is empty, talk to Jingle and you will get a gift pile DIY and a Toy Day sleigh.
Hang the Stockings on a Wall
Before 5AM on December 25, hang the stockings on a wall of your house. Then, after 5AM on December 25, check on them to get Jingle's Photo.