I took my DD last month, she's almost 2 1/2. She did get a little scared and climbed into my lap when the snake and dragon tried to hurt Mickey Mouse, but she was fine. The show isn't very loud. She kept pointing to the dragon and the witch saying "Bad dragon. Bad witch." She still says it when we're at home, "Bad dragon, hurt mouse." She really enjoyed seeing all the characters at the end of the show.
Like the others have said, you know your children best. If they scare very easily you may want to skip it. We really enjoyed it!