ACT I

Our story begins at a family Christmas party in Germany in 1890 where the Stahlbaum family enjoys the evening with holiday activities which include, for the first time, a tree trimming using electric lights! When the time comes for the gift-giving, Uncle Drosselmeyer, a toy maker, gives the children a magical Nutcracker dressed like a toy soldier. Little Clara is fascinated by the toy, dancing around the room with it in her arms. Her brother, Fritz, watches her with envy. Becoming increasingly jealous, he attempts to grab it away from Clara, but drops it in the process, breaking it. Uncle Drosselmeyer bandages it the best he can, then hands it back to Clara, who plays with it quietly in her lap, while the rest of the family begins their annual holiday dance.

Soon the time comes for goodbyes, and the children climb the stairs to their bedrooms while the adults say goodnight to the guests. But Clara does not sleep; instead she sneaks downstairs to be with her Nutcracker doll. As the clock strikes twelve, she settles on the sofa and soon falls fast asleep, clinging tightly to the doll. As she sleeps, her dreams come alive, and Uncle Drosselmeyer arrives, while the rest of the house begins to change around her. As the Christmas tree grows large and wondrous, Clara is frightened by groups of mice who seem to appear out of nowhere, but magically, her Nutcracker doll defends her from them by summoning the rest of the toy soldiers from the cupboard and leading them into battle against the Mouse King. Victorious, yet exhausted, the Nutcracker transforms into a dashing Prince, who takes Clara on an adventure in the Land of Snow.

ACT II

Arriving at the Crystal Palace, Clara and the Prince are met by an assortment of fanciful creatures. Welcomed by the Sugar Plum Fairy, the pair recount their tale of bravery, leading the Sugar Plum Fairy to order a celebration in honor of their achievements. Beginning with a Spanish Flair, the festival includes dances from countries all across the world. The story ends as Clara is awakened by her mother. Was it all just a dream?