In her first movie brimming with Pyotr Ilyich Tchaikovsky's enchanting music, Barbie (Kelly Sheridan) gives life to the plucky young girl, Clara, as she narrates the fascinating story of the Nutcracker to her younger sister, Kelly (Chantal Strand). When Clara receives a lustrous wooden nutcracker from Aunt Elizabeth Drosselmeyer (Kathleen Barr) as a Christmas present, that same night, the magical toy comes to life to protect her from the army of the evil Mouse King (Tim Curry). However, the invader manages to shrink her to toy size. Now, Clara and her defender, the brave Nutcracker (Kirby Morrow), embark on a marvellous adventure, in search of the beautiful Sugarplum Princess - the only one capable of breaking the spell. Can a dash of valor help Clara thwart the King's plans?