Penny went home to give her baby brother the bad news. She wasn't sure why Santa was so upset. She'd been fucking Paulie for a while now and she's not sure how he found out. People always say that Santa seems to know everything and they must be right!. She got home and her parents weren't around so she went towards their bedroom. They have shared a room since she can remember and that was how they ended up having sex with each other.

The door was cracked open so she peaked inside. Paulie was on his bed naked. He was always masturbating whenever he could. Today he was on his hands and knees bent over doggie style shoving a big dildo up his ass. The site was not unusual, he tended to love ass play. In fact, Penny had a large strap on that she frequently used on him and he loved it! One of the older elves named Eddie made sex toys for all the other elves. Santa must know about it. Eddie said even naughty toys could be fun too.

Watching my brother fuck himself with the dildo was making Penny wet. She slid a hand down and pinched her little clit and started playing with herself under her clothes.

"Uh, uh, uh..." Paulie was shoving the entire thing in his ass rocking back and forth pretty hard now, it looked like he was about to get off. "Fuck me Daddy!" he yelled. This shocked Penny, she never knew he fantasized about fucking their Daddy.

"Oh yeah!!!" he cried as he reached under himself and straightened up grabbing his hard cock. He started stroking it in time with the dildo that he was fucking himself with and he came in big gobs of cum all over his bed. "Argh!" Once he finished cumming he pulled the cock out of his ass and set it aside then laid down on the bed trying to catch his breath.

"Wow Paulie, that was really hot! I didn't know you fantasized about Daddy fucking you!" she said as she entered the room closing the door.

"It just seemed right at the time I guess." he said panting still breathing hard.

"Well, we are in trouble with Santa. He knows we are having sex and he's upset. I'm not sure why though." Penny said. "He wants you to come to dinner at his house with me tonight, he said he'd talk to us about it after dinner."

"OK!" said Paulie. He never seemed to worry about things like this so he wasn't worried.

Back at Santa's house, Mrs Claus was getting dinner ready and Santa came into the kitchen.

"So are you upset with little Penny?"

"No, not really. She is fucking her brother and I wanted to get him over to have some fun too!" he said to her rubbing his cock through his sweat pants.

"Oh dear... you had her scared to death. You sure are a dirty old man!"

Penny knocked on the door. "Come in Dear." said Mrs Claus. Penny came in with her brother in tow. The took off their heavy coats and hung them in the entry way then took off their boots and walked into the kitchen to join the older couple. Penny was a vision, her long blonde hair was in pig tails as Santa requested and wore a cute red dress with white stockings and Paulie wore a pair of jeans and a t-shirt.

"Come in and make yourself at home." she said. Everyone sat at the table and had a great meal.

After the meal was eaten, Penny helped Mrs Claus with the dishes and Santa took Paulie into the living room to talk. He lit his pipe and sat down in his chair.

"Come over her boy and sit at my feet." Santa was a large fellow. He sat in his chair that was rather large. Sort of like a throne. Big and red and very over powering was the chair. Paulie sat on the floor at his feet and looked at him.

"So I wanted to talk about you and Penny." he said. "I know what you've been doing. And I'm not upset, but she's my best girl. I love her a lot and I know she's gong to share herself with others and I'm glad it was you. I've taught her a lot about sex and I thought I might be able to show you a thing or two. Would you like that Paulie?"

"Oh yes Santa, we thought you were mad at us!" Paulie said.

Mrs Claus and Penny came into the room finishing up and Mrs Claus said "Well Dears Im off to bed. Don't keep Santa up too late."

"Ho Ho Ho" said Santa. "Good night." Penny was left there in her pretty little dress. "So, your sister looks precious don't she Paulie?"

"I think she looks hot!" said her brother as he crawled over to her on his knees. "And look santa!" he said turning her around showing him her backside in the dress. "Bend over sis! She forgot her underwear look!" he said bending her over exposing her bald little pussy. He rubbed it with his thumb rubbing it up and down her crack.

"Mmmmmm..." she said.

"She never wears panties when she comes to see me Paulie." Santa said as he walked closer to the couple. "Now you two come here." he said as he lowered his sweat pants and pulled out his cock. "I want to teach Paulie how to suck cock."

Paulie smiled big and stood up next to his sister. They were both the perfect height to suck him off. "What do I so Sis?" he said looking at his sister.

"First you have to get it hard." she said as she leaned in and kissed the head. She sucked it into her little mouth just getting the head inside her mouth. Santa liked it as he stroked her hair. He always liked her pig tails. He grabbed one in each hand and started guiding her mouth on his hardening cock. Penny put her hands around Santa and on his butt pulling I'm deeper into her mouth as well. Soon she had his cock completely hard and all the way in her throat.

Paulie looked at his sister and said "My turn!"

"Umphf" she said pulling it all out of her mouth. Some precum had dripped in her mouth and she swallowed it. "Mmmm, you ready?" said Penny. He nodded and she said "Just relax and swallow when it gets to your throat like we practiced." Paulie nodded and he took her place. He never sucked on a man's cock, but they practiced with the dildo. He knew he wanted to suck a cock, but he never thought he would get to suck Santa's. He put it in his mouth and shoved it as far as he could making himself gag.

Penny giggled and said "Take it easy. Don't try to do it all at once. Get use to it and work a little more in each time you stroke it in and out of your mouth."

Paulie nodded and put it back in his mouth slower this time. Penny looked up at Santa and he smiled at her. She bent down and put one of his big hairy balls in her mouth sucking it gently while her brother sucked him off. This made Santa groan.

Paulie was determined to suck more of his cock like Penny did. Taking his sister's advice he had about half of it in his mouth and started sucking more up and down each time he went a little farther. Soon, he felt it his throat and he gagged again but not as hard as the first time. He remembered her words and he tried again swallowed as he felt it near his throat. Like she said he got a little more in. Then he tried again and again and he almost had was getting deeper. He kept at it and soon it was super wet and covered with hit spit mixed with a big dose of precum that was flowing out of his cock now. His cock was not huge for human standards, about 6 inches but for elves it was gigantic.

Santa was looking down at the pair and Paulie was trying to deep throat it as much as she did.

"Your oral talents must run in the family baby!" he said with a little wink to Penny. "Take off your dress and leave on the stockings." Penny took off her little red dress and showed her body. She had no breasts yet they usually came in for elves in a few more years. She dropped the dress and turned around showing Santa her awesome ass. Santa pulled Paulie off his cock with a pop.

"Both of you bend over now side by side. Paulie, you need to strip."

The elves did as he asked and Penny helped her little brother get naked. Once he was naked she grabbed his cock and rubbed it. He had a nice cock. Not as big as Santa's but very nice. Both of them were in position and Santa got behind them and he played with their assholes. He pushed a fat finger in each of them dry. Both squirmed getting use to the finger. He rubbed Penny's pussy as well getting his left hand moist with her juices. He rubbed them all over her tiny ass and then got behind her and pushed his cock all the way inside. He loved her tight little ass. It was tight, wet and hot. He never thought he would need anything else in his life than the little sexy elf. He fucked her harder getting her to join his movements pushing back to meet his strokes. She was looking at her brother as he fucked her.

"You're gonna love this, uh, uh, uh!" she said to Paulie. "He fucks me solo good. Oh, Oh oh!" she cried she was about to cum. Paulie reached over and rubbed her clit and she exploded on Santa's cock. "Oh yeah! Fuck me Santa!!!"

Santa fucked her harder and harder slamming inside her making her cum, he was pounding her hard as she came. Once she finished cumming he pulled out of her, hick cock was soaked and ready. He moved behind her brother and rammed his cock inside the boy getting about half of it inside the first thrust.

"Owwww" said Paulie as he was not expecting him to do that. He liked his cock inside him though. Santa waited a minute until he got used to having it inside him and then started fucking. He got deeper and deeper inside the elf boy and soon he was fucking him as hard as he just fucked Penny. Penny was kissing her brother deep as he got fucked in the ass by Santa.

Soon Santa could not hold back any more. He fucked deep when he came shooting string after string of hot sticky cum deep inside the boy. "Ahhhhhhhh!" Santa said as he finished cumming in his tight ass. He collapsed on him forcing his cock all the way inside when the boy finally came. Penny was stroking his cock and he came all over her hand and dripped all over the floor.

They all rested for a bit and Santa was the first to move. He got up and pulled Penny over to clean up his cock. She licked him clean then he pointed to her brother and said "You better clean him up too. Don't want all that cum to go to waste!" he said as he moved back to his chair to watch the duo. She leaned down and sucked all of the cum she could out of his ass and cleaned him up nice and neat.

"My turn" she said as she pulled her brother over to her and he cleaned up her ass as well licking up her pussy as well. She liked it as he sucked her ass and pushed his fingers inside her making her moan again. Paulie loved his sister very much and he loved sucking her ass almost as much. He had Penny moaning again as he fingered her ass and pussy.

"Keep it up brother, I'm gonna cum again!" Paulie looked at Santa for his approval, but he was fast asleep. Paulie lowered his mouth down and licked her bald little pussy rubbing her clit making her cum. "Argh!!! Yeah bro you're making m cimmmmmm!!!!!!"

After she calmed down, they were sitting together cuddling. "So what do we do now?" asked Paulie. "Is he done with us yet?"

"I doubt it. He'll wake up soon. Let's go find Mrs Claus!" Penny said as she raced up the stairs towards her room.

Mrs Claus was in her room alright, but she was far from sleeping. The door was open so they peeked inside. She was on her bed and she had a nightgown on. Although Mrs Claus was older she was very beautiful. Her face was very "grandmotherly" but she had beautiful blue eyes and a nice plump body. She never showed it since she was usually in loose clothing and house dresses but she had DD tits and a firm ass. She kept herself in shape because she liked getting fucked by the older elves almost as much as Santa liked the little ones. But she also had a thing for the little ones as well. She was in her bed on her back with her house dress pulled up over her tits. She had a vibrator on her pussy as she was trying to get a little relief. Santa didn't like for her to join him in his time with the elves, and she heard them downstairs fucking.

"Come on..." Penny whispered to her brother as she crept up to the bed. He followed her and they went right to her side. Mrs Claus heard them and looked over with startled.

"Oh my. What are you two doing in here?" she said pulling the vibrator away and pulling down her nightgown.

"Santa fell asleep!" Paulie said. "And we wanted to see if you wanted to play?"

Penny got up on the bed near her feet and pulled up her gown revealing her mature bald pussy.

"Yes Mrs Claus. It's been too long since I ate your pussy. Much too long." Her pussy was big. She kept it shaved because she preferred it that way. Her lips were large and split open. You could see she has enjoyed a very active sex life.

"OK Dear, but be quiet. We don't want to wake up the Mister." said Mrs Claus.

With that Penny pulled her gown up further and motioned for her to take it off. She complied and Paulie pulled himself up onto the bed. He was astounded by the size of her tits. They were massive. Bigger than any he had ever seen in fact. He put one of them in his mouth sucking on the huge nipple. It must have been an inch long. He had both of them in his hands playing with them as he sucked on the right one. Penny worked her way up in between her plump thighs and positioned herself at her pussy mound. She started licking her wet pussy and that made her moan.

"Ohhhhh, yes Dear." she said as she pulled her face deeper into her big wet snatch. You remember what I love don't you Dear?"

Penny started sucking harder getting all of her juices out of her and she put two fingers inside her, then three pumping her fingers deep inside her.

"Do you want more?" she asked as she pumped her pussy making her feel nice.

"Yes please." she said. Penny then took her entire hand and started fucking the old lady with her entire hand. Her hand was smaller than a human's hand as she was still so small. She was fucking more and more and soon she was past her wrist deep inside the woman.

Paulie was busy sucking her tits. He was having so much fun with them.

"Why don't you fuck my titties?" asked Mrs Claus. "I like that and I think you will too!"

Paulie climbed up onto her chest and put a knee on each side of her looking down at her. She squeezed her tits together and Paulie put his straining cock between them. He was really leaking pre cum now and he was greasing up her tits with each stroke. She pulled her nipples and squeezed them together over his cock. He was completely enclosed inside her massive cleavage. He started fucking her as she was looking at him obviously enjoying the fist fucking his sister was giving her.

"Fuck my tits boy!" she said as she increased the rocking from below. He pumped her again and again. The seal of her meaty tits felt as good as any pussy could. She could chance the amount of pressure she was applying to his cock in her tits making it feel different every stroke he made.

"I'm cumming!" he said as he pumped her tits as hard as he could. "Ahhhhhhhhhhh." he moaned as he started releasing his load all over her tits. "Yeah!" he said as he got off her chest.

Penny looked at her once her brother dismounted her massive tits and she was fucking her very hard now pushing her arm into her halfway up to her elbow. They were looking into each other's eyes. Again and again she pumped her arm. Then she had an idea. When she had her hand as far into her as she could go...she opened her little hand.

"Oh my gosh!" said Mrs Claus. She had never felt such a thing. "Yes, yes, yes!" She cried.

Penny started moving her hand inside her on the deep strokes. Sometimes spreading the fingers all the way open and sometimes she would just wiggle them.

"Ah, ah, ah, yes Penny, fuck meeeeeeee!" Mrs clause tensed up and came really hard. Harder than she had ever cum! "Ah, Ah, Ah... yes. Oh my, oh oh my. Take it out Dear Penny. I can't stand it any more!"

Penny removed her tiny arm with a lewd sucking sound as her pussy began to shrink down to it's normal size. Penny brought her hand up and put it in front of Mrs Claus's mouth. Mrs Claus started licking her own juices off her fingers and Paulie joined her. Soon they had all of her juices cleaned up and she hugged them both. Mrs Claus knew she had to make sure she did this again. That was for sure.