The Children Called Her A Monster. And Then? A Christmas Miracle.

Abandoned as a puppy and at just six-months-old, Penelope developed a case of demodectic mange so severe that when she sought solace at a local school, her appearance scared the children. Apparently, she'd been suffering with the parasitic disease pretty much since she'd been born, and had never received any treatment. Think about that. Her fur was gone. Her skin was cracked and sore. She was depressed and living in pain.

But when the heroes at the Jason Heigl Foundation came to her rescue, it didn't take long for things to turn around. Little by little, Penelope starting improving — vastly. She started to wag her tail and hold her head high as her fur grew back nice and shiny, and her infections healed. She showed her true colors: she's a bundle of love, and joy.

The shelter named Penelope their "Christmas Miracle," because she was rescued around the holiday season and ready for her new home come Christmas. "She has shown such a will to live after struggling on the streets for so long and at such a tender age," the shelter said.

As soon as Penelope's story was shared online and in the California community, families began clamoring to meet and adopt Penelope. The team narrowed down the list of applicants to the perfect fit — and what better way for this miracle dog to kick off 2014 than finally finding her forever family.

Please enjoy Penelope's journey, and SHARE this incredible rescue story with your friends and family.

Click here to meet Pumpkin, another miracle dog with an amazing story.

When Penelope was found, she was covered in demodectic mange -- and she scared the children at the school where she sought shelter.

Despite her condition, the shelter staff could tell Penelope had a kind heart.

After months of rehabilitation, Penelope showed vast improvement. Her coat grew in shiny and she held her head high!

Tons of families jumped at the chance to meet and adopt her, but one family made the perfect fit.

This once poor, abandoned pup now lives a life of health and happiness. Can you believe it's the same dog?!

Here she is... the queen, relaxing in her new castle.