Fritz is thoroughly chastized for his heinous act. Since he is so contrite, he is allowed to stay at the party.

While Clara weeps disconsolantly, Herr Drosselmeyer deftly fixes the nutcracker with his pocket handkerchief and gives it to her once again.

The girls gather around the tree and rock their dolls, while Clara tenderly cuddles her nutcracker. The older folks are charmed by this scene.

The boys gather together and participate in some not-so-charming activities.

The guests indulge in one last elegant dance and then depart.

While her parents look on, Clara gives her nutcracker a goodnight kiss and goes off to bed accompanied by her nursemaid. The candles are extinguished and all is quiet as the family settles in for the night.