A prosperous Christmas celebration with the Stahlbaum family. Family and riends decorate the Christmas tree together. When the tree is finished, the children are called. Clara and Fritz Stahlbaum admire the decorations. The party starts and the children receive presents. When the old standing clock indicates eight o’clock, a mysterious figure enters the room. It is Drosselmeyer, Clara’s godfather. Drosselmeyer is a magician and talented toy maker. He brought four lifelike dolls with him. The dolls perform a dance, after which they disappear for safe storage.
The children are disappointed, but Drosselmeyer has another gift for them: a wooden nutcracker doll. Everyone ignores the Nutcracker, except Clara. She immediately loves the doll. Fritz makes the nutcracker however on purpose. his makes Clara sad. Clara can not sleep at night. She returns to the living room to find her nutcracker. When she finds him, the clock strikes midnight. Drosselmeyer appears on top of the stand clock to sit. Suddenly the room fills with mice. The Christmas tree rises enormously and the nutcracker doll grows up to people size. Before she realizes what happened, Clara finds herself in the middle of a fight between an army of gingerbread soldiers and mice. The mice, led by the Mouse King, start eating the gingerbread soldiers. The Nutcracker sends reinforcements in the form of tin soldiers and dolls. When the Mouse King intends to attack the wounded Nutcracker manages to stab him and the Mouseking retreats. Clara stopped the attack by throwing her slipper. The mice retreat.
A pine forest in the snow. After the retreat of the mice the Nutcracker turns into a handsome prince. He takes Clara to the forest, where the snowflakes flock around them dancing. They beckon the two to the kingdom of the prince. 2nd act: Clara and the prince travel to Candy Land. The Sugar Plum Fairy ruled there while awaiting the return of the prince. The prince tells the Sugar Plum Fairy how Clara saved him from the Mouse King. In honor of the young heroine a celebration takes place with treats from all over the world: chocolate from Spain, coffee from Arabia, tea from China and sweet sour canes from Russia. They all perform their national dances and are followed by Danish Shepherds, Ginger Mother, her kids and waltzing flowers. As an apotheose the Sugar Plum Fairy and her page perform a pas de deux. All candies perform a last waltz. Sugar Plum Fairy accompanies Claa and her prince from their throne. The Sugar Plum Fairy kisses them goodbye and lets them ride away with a sldge pulled by reindeers while all party members wave goodbye.