Kayleigh Moran was out shopping with her daughter Daisy in Manchester when the elderly man approached her in the street and handed her the envelope, telling her not to open it until he was out of sight.
When she did, Kayleigh was stunned to find the cash and a note that said: "Happy Christmas!"
The 20-year-old mum has used the money to buy Christmas presents for a local children's toy appeal and a memorial for her gran, as the family hadn't been able to afford a proper headstone.
She can now also afford the train fare to visit her mum in North Wales for Christmas and treat her family.
Kayleigh was quoted in Metro saying: "It is such a lovely thing to do – you see people walking past homeless people and not giving as little as 50p but this man chose to give me and my family £200.
"It has been a big help to me and I just want to tell him thank you."
We think Kayleigh has found a real life Santa!
By Sophie Boyden
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