It is Christmas Eve. The guests attending the party given by Dr. and Mrs. Stahlbaum are having a wonderful time. There is singing and dancing, and many delicious holiday treats to eat. Marie and Fritz, the Stahlbaum's children, exchange gifts with their friends as they play around the brightly decorated Christmas tree. Marie is especially delighted when her godfather, Herr Drosselmeier, arrives because he always brings her the most wonderful gifts.
Whiile the parents entertain themselves, Drosselmeier invites Marie and her friends to watch some of his marvelous magic tricks, including two life-sized dolls that dance for the children. Drosselmeier then gives Marie a Nutcracker doll that delights her.
Soon the party ends, and all the guests go home. Still excited from all the festivites, Marie goes to bed, but cannot fall asleep. So she tiptoes downstairs to play with the Nutcracker doll Drosselmeier gave her at the party. While Marie plays with her Nutcracker, she falls asleep and begins to dream.
In her dream, Maria sees the Chirstmas tree grow and the toy soliders and dolls become life-sized. Marie is surrounded by the army of mice led by their Queen. They declare war on the toys that come to Marie's defense. Marie watches while the toys, led by the Nutcracker, battle the mice. But when the mice are about to defeat the toys, Marie can stand it no longer. She comes to their rescue by throwing one of her shoes at the Mouse Queen. This surprises the Queen, and allows the Nutcracker to defeat her. Without a leader, the other mice give up and carry their dead Queen away.
The victory transforms the Nutcracker into a handsome Prince. He invites Marie to come with him to visit his Kingdom. On their journey they pass through a winter wonderland full of dancing snowflakes. Finally, Marie and the Prince arrive at his kingdom, "The Land of Sweets." He invites Marie to a grand party given in her honor. The Prince Escorts her to a throne where she is treated to a dazzling display of delights from many lands. As the party comes to an end, everyone joins together in dancing a joyful finale. As Marie begins to awaken from her dream, the inhabitants of "The Land of Sweets" slowly fade away. She is back in her own home holding her Nutcracker doll and thinking about her wonderful adventures.
