Act 1:
Don Quixote’s study
Don Quixote, a country gentleman, believes himself to be a valiant knight straight out of the country romances which are his favourite reading. As he dreams, Dulcinea, the heroine of these stories and his vision of the ideal woman, appears to him. But his neighbour, Sancho Panza, pursued by servants from whom he has stolen a chicken, enters and disturbs his day-dreams. Don Quixote decides to make Sancho Panza into his knightly companion, and together they leave to take on the world.

A public square in Barcelona
Kitri, the daughter of Lorenzo, the innkeeper, searches in the crowd for her beloved, Basilio the barber. Her joyous dancing is interrupted by her father who, wanting her to marry the rich and noble Camacho, repulses Basilio. Kitri determinedly refuses this proposed marriage, but the arrival of don Quixote and Sancho Panza puts an end to their argument. Lorenzo offers his hospitality to the knight and invites him to his inn. Sancho Panza is a little too attentive to the girls and is teased and manhandled by the young people until don Quixote comes to his rescue. When don Quixote sees Kitri, he believes her to be his beloved Dulcinea. Gallantly, he offers her his arm for a minuet. Camacho is furious. Kitri and Basilio take advantage of the confusion to flee.

Act 2:
Scene 1: The gypsy camp
Basilio and Kitri take refuge in a windmill. They are discovered by a band of gypsies, who try to rob them. However, the gypsies, soon realising the poverty of the young couple, decide to help them when they witness the arrival of Lorenzo and Camacho, followed by don Quixote and Sancho Panza, who eventually find their hiding place. The gypsies try to set don Quixote against Lorenzo and Camacho. To this end, they install a puppet theatre where the story of the thwarted love of Basilio and Kitri is played out. Caught up by the story, don Quixote tries to come to the puppet lovers’ aid, and destroys the theatre. Suddenly, he finds himself facing the windmill, which he attacks, believing it to be a gigantic enemy. He is caught up in the spokes of the windmill and thrown to the ground. The gypsies, disguised as ghosts, attempt to frighten the knight. Basilio and Kitri manage once again to escape.

Scene 2: Don Quixote’s dream
Don Quixote, wounded and half fainting, dreams that he is transported to an enchanted garden as a reward for his courage and fidelity. The Queen of the Dryads takes him to Dulcinea (Kitri), to whom he dares to declare his love. But the dream vanishes.

Act 3:
Scene 1: An inn
Basilio and Kitri, happy to have escaped their pursuers, celebrate their success with friends at an inn. Lorenzo, Camacho, don Quixote and Sancho Panza lose no time, however, in rejoining them. Lorenzo is absolutely decided that Kitri should marry Camacho. In desperation, Basilio resorts to subterfuge and pretends to commit suicide. Kitri implores don Quixote to help them, and the knight obliges Lorenzo to allow Kitri to marry the “ dying ” Basilio. But as soon as her father has given his blessing, Basilio jumps up gaily. Provoked beyond endurance by the trick played upon him, Camacho challenges don Quixote to a duel, and is beaten.

Scene 2: The wedding
In the midst of great rejoicing at the marriage of Kitri and Basilio, don Quixote and his faithful servant set off in search of new adventures.