The magician Drosselmeyer transforms the drawing room for a battle between mice and toy soldiers. During the battle, Clara saves the Nutcracker's life - so breaking a magical spell that turned him from a boy to a toy - and the Mouse King is defeated. In celebration, Drosselmeyer sweeps Clara and the Nutcracker off to the Kingdom of Sweets, where they meet the Sugar Plum Fairy and take part in a wonderful display of dances. The next morning, Clara's adventures seem to have been more than just a dream.

Loosely based on the story by E.T.A. Hoffmann, the ballet begins in the 19th-century German home of the Stahlbaums, where they are hosting a lively Christmas party. The period setting is captured in opulent detail by Julia Trevelyan Oman's designs, which include authentic Christmas tree decorations that are magically brought to life. Wright's choreography ingeniously incorporates surviving fragments of the ballet's original material, including the sublime pas de deux for the Sugar Plum Fairy and her Prince. But in emphasizing the relationship between Clara and the Nutcracker, the production also gains a touching subtext of first love.