The story opens in the foyer of the Silberhaus home. Clara and Fritz are anxiously waiting to begin the holiday festivities. Their cook has prepared many beautiful desserts from all over the world, and friends will be arriving soon.

One of their guests is a relative they haven’t met yet. He is their wonderfully charming and magical Uncle Drosselmeyer.

The party finally gets under way with dancing for both parents and children. Uncle Drosselmeyer brings very special gifts to the party, such as beautiful large dolls that he magically commands to dance. However, the most enchanting gift he brings is a doll called the Nutcracker. Clara immediately falls in love with it. Fritz becomes a tad jealous and tries to snatch the Nutcracker from Clara but instead accidentally drops it.

Drosselmeyer is there to quickly mend the broken doll, to Clara’s surprise. After the guests depart, it is time for the Silberhaus family to retire. Clara would desperately love to take her Nutcracker to bed with her, but Mother and Father suggest that she keep it under the tree.

During the night, Clara sneaks out of bed to retrieve her Nutcracker, but while she is near the tree the grandfather clock strikes 12, scaring her. All of a sudden the living room is filled with rats. She is frightened and jumps onto a chair for refuge. Magically, Drosselmeyer appears and dismisses the rats. The house suddenly begins to grow and change shape. Clara is in awe of the new surroundings. To her amazement, Fritz’s toy soldiers appear from the giant tree and take up battle with the rats, which are now being led by a Rat King. To come to her defense, her beloved Nutcracker, who has become lifelike, battles the Rat King. Just when it looks as though the Nutcracker is about to be defeated, Clara throws her slipper, striking

the Rat King dead. As he is being dragged away, Clara turns to see that the Nutcracker has transformed and Drosselmeyer is there to lead them on an adventurous journey.

Through the large doors and into the snow forest, Clara, the Nutcracker and Uncle Drosselmeyer are met by the Snow King and Queen. There they experience the wonders of the winter snow. The Snow King and Queen present them with a beautiful sled, and Drosselmeyer sends them off to continue their exciting journey to the Land of Sweets.