A seven-year-old girl discovers that her mysterious Christmas toy that harbors an amazing secret in this animated re-telling of the classic holiday tale. As the family eagerly gathers around the Christmas tree to open their gifts, Marie is transfixed by the nutcracker sent to her by her loving Godfather Drosselmeier.
Upon discovering that the strange toy is actually Godfather Drosselmeier's nephew, who has been transformed into wood by the evil Madame Mouserink, Marie vows to help her tiny friend break the curse by joining his army of toy soldiers in defeating the fearsome seven headed mouse king. But there's one more step needed to free the boy of his wooden prison in order to truly become flesh and blood again he must win the love of young Marie.