It's Christmas Eve, Godfather Hoffmann has some special gifts for Fritz and Marie, including a Nutcracker. As Marie tucks in the handsome prince for the night, the room fills with mice, led by the Mouse King, who seems to be at war with the Nutcracker.

Is it all a dream or is the story real as Godfather Hoffmann explains to Marie how the Nutcracker became the way he is. The ballet only tells half the story of Godfather Hoffmann's wonderful toys and the strange adventures of Marie on Christmas Eve, when the toys come to life and she finds herself in another world, where she must save her Nutcracker Prince from a terrible curse.