The Nutcracker, based on a tale by Ernest Hoffman and choreographed by Ivanov to the music of Tchaikovsky, was first performed before the Czar of Russia in St. Petersburg in 1892. It was brought to the United States in 1940, where in its various interpretations has evolved into a beloved holiday classic.

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The curtain rises in the living room of Herr Silberhaus. It is Christmas Eve and family and friends gather together to celebrate. Clara is enchanted by the festivities. The proceedings are interrupted by the appearance of mysterious Uncle Drosselmier bringing magical presents for the party. Clara and Fritz argue, after which Uncle Drosselmier presents his neice Clara with a special Christmas gift, a Nutcracker doll.

Clara finds it hard to sleep, so she steals into the living room to see her Nutcracker doll. As the clock strikes midnight, she becomes dazed. Clara awakens to see the Christmas tree magically growing, and her Nutcracker doll comes to life to battle with the Mouse King. The Nutcracker is transformed into a handsome prince who travels with Clara throughout the Land of Snow.

Clara and her Nutcracker Prince visit the Kingdom of Sweets. The Sugar Plum Fairy asks Clara to recount her adventures and Clara is rewarded for her bravery. The Nutcracker Prince summons the sweets and spices from around the world to dance for Clara. As Clara awakens on Christmas morning cradling her Nutcracker doll, she realizes Unce Drosselmier has given her a wonderful present--the gift of a special dream!