On the New Year's holiday, guests gather in the house of Stalbaum. Among them are Drosselmeyer, the godfather Marie and Fritz - the children of Stalbaum. He prepared for them a wonderful gift - a funny Nutcracker.
Children are looking forward to, when they finally will be shown a Christmas tree and holiday gifts. The desired moment comes: before all appears elegant Christmas tree.
Suddenly, Drosselmeyer appears in the costume of a wizard. The ability of an unfamiliar guest to revive toys leads children to delight, but, like all mysterious, it involuntarily causes fear. To dispel it, Drosselmeyer takes off his mask, and children recognize him as their favorite godfather.
Marie wants to play with wonderful animated dolls, but ... they have already been taken away. In consolation Drosselmeyer gives Marie the Nutcracker. The unskillful, funny little man really likes her.
Brother Marie Fritz, the naughty and mocker, accidentally breaks a toy. With tenderness Marie consoles her crippled pet and gently rocks him. Fritz with friends, wearing masks of mice, tease distressed Marie. Guests are returning from the next room. The last ceremonial dance (großfater) - and everyone leaves.
Night. The room where the tree stands is lit by moonlight. She seems mysterious, full of magical secrets. Overcoming fear, Marie came here to visit the "sick" Nutcracker. She hugs and lulls him.
And at this time appears ... Drosselmeyer. This is not just a good godfather, it is - a magician. At the wave of his hands, everything around is transformed: the walls are moving apart, the tree begins to grow. Toys come to life with her.
Suddenly, mice appear under the floor, headed by their Mouse King. Dolls in horror and confusion. Only the resourcefulness and courage of the Nutcracker saves everyone: having built tin soldiers, he bravely leads them into battle with the mouse army. However, the forces are not equal. The Nutcracker is left alone against the Mouse King and his entire retinue. Marie is in despair: her pet is in danger. But Drosselmeyer stretches a burning candle to her, she throws it at the mice, and they rush into it all in fear.
The battlefield is empty. Only one Nutcracker lies motionless on the floor. Marie hurries along with the dolls to help. And a miracle happens ... Before Marie is a beautiful young man, the Nutcracker Prince. He goes to meet her. Disappear walls of the house. Marie and her friends are under the dome of the starry sky, near the fabulous Christmas tree.
In the magical dance light snowflakes whirl. Marie and the Nutcracker-Prince beckons to her like a beautiful dream, a star flickering at the top of a Christmas tree. They sit in the magical boat and rush to the top. Dolls follow them.
Marie and the Nutcracker-Prince in a magical boat float through the fir-tree kingdom. With them, their friends are dolls. A shining star is getting closer and closer, now they have almost reached the top of a fabulous Christmas tree ...
But the mouse king with sneaking behind them suddenly attacks them. The Nutcracker-Prince again bravely takes the fight. Marie and dolls with fright are watching the fight. The Nutcracker Prince overcomes the enemy.
Everyone happily celebrates victory. Dance dolls. Candles burn brighter, a Christmas tree comes to life. Evil mice are defeated! Marie and the Nutcracker Prince are happy - they have reached the realm of dreams.
But all this is just a dream ... Minula's New Year's Eve, and with it wonderful dreams have gone ... Marie, having felt the breath of a fabulous dream, sits near her Christmas tree, at home, on her knees the Nutcracker doll.