So the script is:

local tools = game.ReplicatedStorage.ChristmasEvent:GetChildren()
	local starterGui = game:GetService('Players').LocalPlayer:WaitForChild('PlayerGui')
game.Workspace["Gingerbread Man"].Head.Dialog.DialogChoiceSelected:connect(function(player, Dialog)
        if Dialog.Name == 'QuestGiver' then
starterGui.Quests.QuestsText.Text = "Quest: 0/8 Reindeer And 0/5 Sleigh Parts"
		if game.Players.LocalPlayer.Backpack:FindFirstChild(tools) then
			local clone = game.ReplicatedStorage.Eggnog:Clone()
			 clone.Parent = game.Players.LocalPlayer:FindFirstChild("Backpack")
		end
	end
end)

The problem is at the end i doesn't give me the Eggnog and shows no errors. Christmas Event (Line 1) has all the items I want to be in the player's inventory. My original problem was everything was in server storage and when I thought for once I realized server can't be accessed by local script. So I just changed it to replicated (Simple). I have the items in my inv and it just doesn't give me the eggnog any suggestions?

SOLVED: FindFirstChild can't be done with a variable so I tried GetChildren(tools) and it worked fine thanks everyone who tried to help! :)

Try this instead for the cloning service,

local clone = game.ReplicatedStorage.Eggnog:Clone().Parent = game.Players.LocalPlayer:FindFirstChild('Backpack')

If that doesn't work It could be that in line '06' you didn't define a string value FindFirstChild('Tools')