The story of Frosty the Snowman takes place in a small town in the United States during the Christmas season. The exact location is not specified, but it is implied to be a typical American town with a warm and friendly atmosphere. The story takes place during a time when the town is experiencing a cold snap, and snow has begun to fall. The children in the story are making a snowman in the schoolyard, and they decide to place a discarded silk hat, brought to them by Professor Hinkle's rabbit Hocus Pocus, upon the snowman's head.