The Mouse King is about to defeat the nutcracker, but Clara saves the day. A huge battle between the toy soldiers and the mice follows. Just when Clara thinks all is lost, her nutcracker suddenly comes to life and temporarily scares the mice away. The Spanish and Chinese dolls come to help her, but the marauding mice carry them off. A menacing Mouse King orders his minions to steal the nutcracker from Clara. Drosselmeyer is acting very strangely and her nightmare continues as the whole house transforms around her. Worried that her nutcracker is alone downstairs, she goes to find him and falls asleep on the couch. Once all the guests leave the party, the Stahlbaums go to bed. Drosselmeyer is quick to repair the nutcracker for Clara, but Fritz is still looking for trouble and finds a rat with which to tease Clara. Angered that he too cannot crack nuts with his teeth, Fritz regrettably breaks the nutcracker. Instead, Drosselmeyer has another very special and unusual gift, a remarkable nutcracker that he gives to Clara. Although Clara loves the lifelike Spanish doll, and Fritz the exciting Chinese doll, they cannot be left for the children to play with. This year he has some very special surprises for Clara and her family. Every year he creates delightful toys unlike anything else in the world. When Herr Drosselmeyer, who is also Clara’s godfather, comes to the house, magical things always happen.