While browsing through the dump, Courage and his owners get locked inside. As that happens, Courage finds a nutcracker toy he cherishes. Later that night, two rats who ironically dance in ballet capture Eustace and proceed to chase after Courage and Muriel, dancing to music from the Nutcracker, though with the help of the nutcracker toy, Courage with Muriel kept on escaping. Later, Muriel is also captured and Courage with his toy head off to save his owners from the dancing rats.
- Di Lung randomly appears to be stuck on a piece of flypaper the rats use to try to capture Courage.
- "The Nutcracker" is a ballet by Tchaikovsky, the great classical composer. This ballet is an annual favorite at Christmas time.
- One of the dolls Courage plays tea party with is a Robot Randy action figure.
- Parachute Lady appears in a grandfather clock and she screams when Courage opens it.