The children have to wait for Fritz and Marie's grandparents to arrive before gifts will be distributed, so they go back to play. Dr. Stahlbaum starts them off, leading the boys in a military march around the room. That turns into a dance for the children and Frau Stahlbaum, with the fathers joining in.
When the Stahlbaum grandparents arrive, the adults toast the elders and then—finally!—give the children their gifts. The presents are traditional, and very much appreciated: beautiful dolls for the girls, and toy bugles and drums for the boys.