Our story begins at the Pontevedrian Embassy where the guests are awaiting the glamorous Madame Anna Glavari, heiress to her late husband’s millions. However, underneath the gay façade all is not well: Pontevedro is on the brink of bankruptcy and the country faces ruin.

The Ambassador, Baron Zeta, sees only one way to resolve the situation – the widow must remarry, to a Pontevedrian. He sends his factotum Njegus, to find the most eligible embassy attaché, Count Danilovitch. The Count arrives from Maxim’s, his favourite night spot, in a slightly inebriated state and promptly falls asleep. He is discovered by Anna who also is in need of respite from a host of would-be suitors anxious to marry her for her fortune. She recognises him immediately – Danilo was her first love, but she was then only a poor, peasant girl and his aristocratic family had forbidden their affair. Could things be different now? But Anna still vows he must say, “I love you”.

Baron Zeta’s wife, Valencienne, in an endeavour to bring to an end her liaison with Camille, which is getting out of hand, decides to marry him off to Anna. When the engagement is finally announced, after many unexpected twists to the plot, there is general consternation because Camille is a Frenchman and Anna’s fortune would seem to be slipping away. With this turn of events, Danilo cannot conceal his jealousy and angrily departs for maxim’s, and then …..??