The young girl Clara visits her Aunt Gerda and Uncle Drosselmeyer. Her aunt tells her scary stories about the Ragman, a creepy and mysterious man who turns children into mice if they don't go to bed on time. The Ragman is always spying on sleeping children searching for more victims.<br>
Just before Clara goes to bed her eccentric uncle gives her a wooden nutcracker doll. He's a bit embarrassed because the only part on the doll that's perfect is the heart, but Clara loves her new doll.<br>
She falls asleep but wakes up hearing mice squeaking...