It is Christmas Eve early in the nineteenth century. The wealthy mayor, Dr. Stahlbeum, is giving a party for his friends and their children. The children are dancing and playing in excited anticipation of the approaching Christmas festivities and of their presents Herr Drosselmeyer, an old friend of the family, arrives bringing the children gifts and amuses them by his conjuning trick. He give Clara, his favorite, a Nutcracker, which delights her. Her brother Fritz spitefully breaks it but Herr Drosselmeyer mends it for her. After the grandparents arrive and join in the dancing Clara becomes very tried and falling asleep in her chair, has a vivid dream. The room and the Christmas tree seem to grow … from the wainscot a swarm of rats appears trying to capture the Nutcracker, but Clara rushes to his rescue, throwing them her favorite dolls in an effort to distract them from him. From their toy fort an army of soldiers led by the Nutcracker (who suddenly springs to life) comes to help the fight against the rats and their leader, the Rat King. A company of Hussars and an other of marines fight the rat army but are overwhelmed. The Nutcracker and the Rat King are left on the battlefield. Desperately Clara flings her shoe at the rat King. As it strikes him he falls dead and a sudden transformation takes place revealing the Nutcracker as a young, handsome prince.