At the school called
P.S. 5, a teacher named Miss Walker tells some children a version of
E. T. A. Hoffmann's
The Nutcracker and the Mouse King, involving the Care Bear Family. As the story begins, the Care Bears and their Cousins prepare for Christmas in their home of Care-a-lot; the two youngest bears, Hugs and Tugs, are searching for an ornament. While the others spend time in the Hall of Hearts decorating a tree, Funshine alerts them of an unhappy girl named Anna. Enlisting Grumpy Bear to go along, she takes a Cloud Mobile down to Earth. When the two bears visit Anna, they learn that her best friend Sharon has moved away, and her younger brother Peter is more interested in adventures. As they talk about the virtues of friendship, a burst of light startles them. Eventually, a tall wooden Nutcracker doll emerges from a black portal, along with a band of rats (led by the Rat King) who are after him. When the group hides from their foes, the Nutcracker recollects some of his lost memory and explains that he arrived from a place called Toyland; the rats work for the evil
Vizier who is plotting to conquer and destroy that land along with Christmas. Funshine and Grumpy send out a signal to Care-a-lot; Lotsa Heart Elephant, Brave Heart Lion and Tenderheart Bear (along with stowaway Hugs and Tugs) later join them. Together, they send the rats back to Toyland. Before everyone follows, Hugs and Tugs are asked to stay behind with Peter, but they venture into Toyland, nevertheless, hoping to find an ornament and some adventure. At his castle, the Vizier wants to know the whereabouts of a powerful ring worn by Toyland's former Prince, so that he can control the land. His captive, the Sugar Plum Fairy, refuses to tell him; he is more outraged when the Rat King arrives without the Nutcracker. The Vizier soon takes notice when the Nutcracker and his friends enter Toyland, and take a train through its various sights. When they stop for the night, the friends contend with a group of toys led by the
Harlequin, who also want the train, but advise them to leave Toyland. One of them later explains how they tried to save their land, after the Vizier and the rats overthrew its Prince and captured his castle. To make sure the Vizier never got it, the Sugar Plum Fairy hid the Prince's ring away. The Nutcracker is determined to end the Vizier's reign, despite the rats' barricade. En route, the train is attacked by the rats, who capture Peter, Hugs and Tugs. Upon reaching the castle by raft, the group secretly sneaks inside and frees the Sugar Plum Fairy. With her help, the Bears, the Cousins & the Harlequin discover a walnut ornament containing the ring, but the Vizier seizes it. However, the walnut can only be opened by the Nutcracker, who refuses. Furious, the Vizier turns the Bears, the Cousins and the Harlequin into firewood, one at a time. With only Anna left, the Nutcracker reluctantly agrees to open the walnut. Peter, Hugs and Tugs, having escaped from imprisonment, manage to take the walnut, resulting in the rats chasing them. Unfortunately, they are soon recaptured, but free the Sugar Plum Fairy just as the Nutcracker opens the walnut. Before the Vizier can claim it, the Fairy grabs the ring and places it on the Nutcracker's finger, turning him back into the Prince of Toyland and reviving his memory. Restoring the Bears and Cousins to normal, they use their Stare to defeat the rats. With the Vizier also defeated by the Prince, Toyland is returned to its former glory (which means hiding it was useless). The Prince bids farewell to Anna, Peter, the Bears and Cousins, promising to always remember them as friends. He also gives the walnut to Hugs and Tugs for their special ornament. As everyone departs, Anna awakens from her bed, back in the real world. Lamenting that it was all just a dream, she is greeted by a new neighbor, Alan Prince, who looks exactly like the Prince in Anna's dream. When Miss Walker finishes her tale, one of the children wants to ask what happened to Anna. Suddenly a grownup Alan appears at the door. As he and the teacher, now revealed to be Anna, leave the stage together, the other children start rehearsing
Pyotr Ilyich Tchaikovsky's
ballet. Unknown to all of them, the Care Bear Family has been listening all along (secretly supervising them all [naturally], meaning that Anna wasn't dreaming about Toyland after all). ==Cast==