Somewhere between “It’s a Wonderful Life” and “Bad Santa,” there’s “Christmas In the Clouds,” a sweetly sentimental film with a slightly sardonic undertone.

This gentle and funny film took honors at the Sundance Festival - hardly surprising, since it’s about Native Americans and it was filmed entirely in Utah. The majority of the large, appealing cast is composed of Indians.

However, top billing goes to M. Emmett Walsh, portraying an irascible old white guy. Walsh, never one to underact, plays it to the hilt, swilling booze straight from the bottle with obstreperous audacity.

Other leads include Timothy Vahle and MariAna Tosca as the initially star-crossed lovers, crusty-but-charming Sam Vlahos, and veteran Indian actor Graham Greene, who nearly steals the picture.

The setting is an idyllic ski lodge owned and operated entirely by a Native American nation. Vahle is Ray Clouds on Fire, the young go-getter who’s trying to make a success of the resort. Tosca, a stunner with nearly waist-length raven hair, is Tina Little Hawk, a guest at the lodge. Vlahos is Joe Clouds on Fire, Ray’s father, a wise old scamp who does the voice-over narration.

The movie is funny some of the time, poignant as well, and absolutely winning. Who wouldn’t laugh at Greene as Earl the Chef, a relentless vegetarian trying to convert all the guests to Tofurkey and zucchini lasagna.

A number of adorable kids enhance the Christmas atmosphere, along with a trained mouse (Walsh gets double billing as “mouse trainer”) and a clutch of good-looking young Indians playing the hotel staff.

The plot involves mistaken identities, family estrangement, a couple of slightly risqué situations, and some of the most beautiful scenery in the American West. The music is also notable, including twinkly guitar and banjo themes and affecting Christmas carols.

Kate Montgomery, a young Bay Area indy filmmaker, is the director and screenwriter. She has done a delightful job on both counts.

A nice touch at the end of the movie is a long list of people deserving thanks, headed by Robert Redford, founder of the Sundance Festival, champion of American Indians, and longtime environmental activist.

The whole feel of the movie is one of good-natured benevolence. Audiences this holiday season will likely share the feeling.