Care Bears Nutcracker Suite is a TV special consisting of episodes forty-seven through forty-nine of The Care Bears Family television series.
At a 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 suddenly 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 past friend Sharon has moved, and her brother Peter is fond of acting as a pirate. As they talk about the virtues of friendship, a burst of light startles them. Eventually, a tall wooden soldier called the Nutcracker 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 soldier recollects his memory and explains that he arrived from a place called Toyland; the rodents work for an evil Vizier who is plotting to conquer and destroy that land.
Soon, Funshine and Grumpy send out beams of light from their stomach, sending a "Care Bear Stare " to their assistants in Care-a-lot; Lotsa Heart Elephant , Brave Heart Lion and Tenderheart Bear (along with stowaway Hugs and Tugs) later join them. The baby bears are asked to stay behind with Peter, but those three venture into Toyland nonetheless.
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 place. His captive, a small creature called 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 soldier 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 toy jesters 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 Fairy hid the Prince's ring away from view. The Nutcracker is determined to end the Vizier, despite the rats' barricade.
Upon reaching the castle by raft, the group secretly sneaks inside and frees the Sugar Plum Fairy. With her help, the Bears and Cousins try to get a walnut containing the ring, but the Vizier seizes it and turns them into firewood. This leaves Peter, Hugs and Tugs to fight with the rats for the item. Soon, the Fairy saves it from the Vizier, and when the Nutcracker wears it on his finger, he turns back into the Prince of Toyland. The Bears and Cousins break free from the ruler's spell, and use their Stare on the villains to save the place. Afterward, they and the humans say good-bye to the Prince; as Anna returns, she realizes it was a dream and wakes up to meet 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 know asks 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.