Michael Jackson's son, along with his Heal L.A. Foundation, gifted 25 underprivileged kids $150 to spend on themselves and their families, just in time for Christmas. The shopping spree went down at Mattel's headquarters near LAX ... and the kids were grinning from ear to ear as it all unfolded.

The kids got to pick anything they wanted from the toy inventory ... from Baby Yodas and Barbies to Polly Pockets and on and on. And, get this ... if whatever was rung up at the register totaled more than $150, Mattel automatically activated a 50% off coupon.

Prince really gets into the spirit of giving ... from helping kids find the coolest and baddest toys, to hauling huge bags out of the store for the kiddos. The event was COVID-safe -- social distancing, masks, the works.

Giving back with his foundation's nothing new for Prince. Earlier this year, he and the Foundation handed out free meals in L.A. and currently offer weekly grab-n-go meals.