It’s Christmas Eve. Guests are coming to the Stalbaums.
The party is ready to start. The children rush in.
Herr Stahlbaum’s children Mary and Franz, as any other children, eagerly awaite their gifts. The last of the guests to come is Drosselmeyer. His ability to revive toys amuses children but also scares them. Drosselmeyer takes off his mask. Mary and Franz recognize their beloved godfather.
Mary wants to play with dolls, but they are already taken away. Godfather gives Mary a Nutcracker toy. Strange expression on the toy’s face amuses her. Naughty and mischievous Franz accidentally breaks the toy. Mary is upset. She cuddles her damaged but favourite toy and puts it to sleep.
It is late and the guests have to depart. The party comes to an end with some dances. The room in which there is a Christmas tree, is filled with moonlight. Mary returns to the room and gives the Nutcracker a hug.
Suddenly mice take over the room. They are headed by the Mouse King.
The Nutcracker leads the tin soldiers in the attack. Mary follows him. The Nutcracker and the Mouse King face each other in a mortal fight. Mary sees that the Mouse King’s forces are stronger than the Nutcracker’s.
In despair she takes off her slipper and throws it at the Mouse King. The King is frightened and the Nutcracker takes the chance to blow him a final strike. The Mouse King has been defeated and disappears together with his troops.
The Nutcracker wins the Mouse King!
Suddenly Nutcracker’s face begins to change. He turns into a beautiful Prince. Mary and Prince dance together and snowflakes swirl around.
Mary and Prince admire the beauty of the starry sky. Everybody is dancing and having fun, celebrating the victory over the mouse army. Spanish, Indian and Chinese dolls thank Mary for saving their lives. Lovely fairies and pages are dancing around.
Everyone prepare for the royal wedding of Mary and Prince. Mary wakes up. She is still holding the Nutcracker in her arms in the same familiar room. Alas, it was just a magic dream…