PipiFritz and Rose-Clara receive a nutcracker from their godfather, Drosselmeier. PipiFritz breaks the nutcracker and Drosselmeier places it under the protection of Rose-Clara until further notice. During the night, the Rat King and his accomplices try to take the nutcracker from Rose-Clara. PipiFritz's little soldiers come to life, and a battle begins. An episode based on "The Nutcracker" by Pyotr Ilyich Tchaikovsky.