This is a Lladro "Santa's Magic Touch" porcelain figurine, item number 6774.
The figurine depicts Santa Claus painting a small teddy bear.
It was issued in 2001 and retired in 2004, making it a scarce and sought-after piece for collectors.
It is made in Spain from handcrafted, glazed porcelain, a hallmark of the Lladró brand. 6 1/2” tall by 5” wide