It is Hearth's Warming Eve in Equestria, and the four princesses are having a private gift exchange for themselves. In what seems to be a spur of the moment decision, Princess Celestia gifts Twilight a nutcracker doll and tells her the Legend of the Nutcracker Prince, a story about a pegasus captain who was trapped in the form of a nutcracker doll.
Twilight initially dismisses such fanciful talk, but deep down, something about the story resonates with her. The doll intrigues her far more than a simple toy should, but when she falls asleep that Hearth's Warming Eve night, she awakens to find herself face to face with the very being she believed wasn't real, and now she must help him escape the curse. But there is far more to breaking the curse than she originally thought. But with this knowledge in mind, can she save the cursed stallion and return him to Equestria?