A group of dragoons are lounging in a square in Seville in the early 19th century. A girl asks one of the soldiers where she might find a corporal named Jose. The men try to flirt with her, but the girl runs off. Jose enters and they tell him of the girl. He guesses it is Micaela, with whom he is in love. Carmen enters, and the men crowd around her. She taunts them, -and as she finishes her insinuating song she flings a flower at Jose.

As if against his will, Don Jose picks up the flower and conceals it in his blouse. As he does so, Micaela enters and runs to Jose with news of his mother. As Micaela leaves, there is a shout, and in a moment the square is filled with screaming girls. Carmen has wounded another girl in a quarrel and Captain Zuniga orders her arrest. Carmen’s hands are tied, and she is left with Jose as her guard. In a sensuous phrase she invites him to a midnight rendezvous and the corporal accepts. As he unties the ropes which bind her arms, the soldiers come to lead Carmen off to prison. Freeing her hands, Carmen darts away.

At the tavern of Lillas Pastia, Carmen entertains the crowd of soldiers and gypsies with a dance. There is a shout of greeting as Escamillo, the famous toreador, enters. The tavern is a hangout of smugglers, who try to get Carmen to use her hold over Jose to get the dragoon to join them. She agrees, and rouses Jose’s jealousy by telling him she was dancing for Zuniga as she now dances for Jose. She urges him to join her and her friends. Just then Zuniga enters, looking for Carmen. There is an angry scene, and Jose draws his sword. Zuniga is disarmed by the smugglers, and now Jose has no choice but to join them, for it is a crime to draw his sabre on an officer.

The band of smugglers meets at a hiding place in the mountains. Some months have passed, and Carmen’s passion for Jose is dwindling. Half drawing his dagger from its sheath, Jose jealously tells her he will kill her rather than leave her.

Carmen’s friends are telling their fortunes with cards. She sees her own dark fate in the repeated fall of the card of death. The band leaves and Micaela enters. Failing to find Jose, she hides. A shot is heard; Jose has fired at a man coming up the pass. It is Escamillo, looking for Carmen. Jose’s black jealousy flares and the two draw their knives. As Jose is held back Escamillo invites the band to the coming bullfight, and leaves with a taunt for Jose. Micaela is discovered and tells Jose his mother is dying. Before he goes with Micaela, Jose threatens Carmen once again.

Escamillo enters with Carmen and goes to prepare for the coming bullfight. One of Carmen’s gypsy friends whispers to her that Jose is lurking in the crowd. Carmen lingers until she is alone, and turns to face Jose. She rudely spurns his offer to take her away and throws at him the ring he has given her, with the words that she loves only Escamillo. As she makes a desperate dash for the arena, Jose stabs her. Her scream echoes above the shouts proclaiming Escamillo’s victory. As the crowd pours into the square, Jose throws himself in love and agony on the lifeless form.