The Muse wants the poet Hoffmann to reject his sensual loves and belong solely to her. Councilor Lindorf has discovered that the opera singer Stella is planning a post-performance rendezvous with Hoffmann. Lindorf is also enamored of Stella and is determined to keep the assignation himself. During the intermission of Don Giovanni at the adjacent theater, Hoffmann entertains the crowd with a fable, then starts to tell the story of his three great loves.

Olympia-a singing automaton-is the creation of Spalanzani and Coppelius, his former business partner. Coppelius sells Hoffmann a pair of spectacles which convince the wearer that Olympia is in love with him. At a party, Olympia sings spectacularly, although her mechanism keeps winding down. Much enamored, Hoffmann dances with her until she spins out of control and his glasses break. Coppelius, who has been cheated by Spalanzani out of his share of the profits from their invention, arrives in a fury and destroys Olympia.

Antonia is a young singer whose mother, also a singer, died of consumption. Her father Crespel has shut her away, begging her to abandon her love for Hoffmann and to give up singing, which he believes killed her mother. Hoffmann arrives and sings a passionate duet with Antonia, who nearly collapses. The charlatan Dr. Miracle, whom Crespel believes helped kill Antonia’s mother, appears and claims he can cure Antonia. Crespel forces him out and departs. Hoffmann urges Antonia to give up singing and she reluctantly agrees. When Hoffmann leaves, Dr. Miracle returns and conjures up the voice of Antonia’s dead mother, which implores the girl to sing with her. Mother and daughter sing until Antonia faints. Crespel and Hoffmann return and discover Antonia; Hoffmann calls for a doctor and Dr. Miracle reappears, pronouncing the girl dead.

The Venetian courtesan Giulietta introduces Hoffmann to her current lover, Schlémil. Secretly in league with the diabolical Captain Dapertutto, Giulietta seduces young men who eventually lose their souls as well as their money. Nicklausse warns Hoffmann about Giulietta, but he is already enamored. Dapertutto offers Giulietta a large diamond if she will steal Hoffmann’s reflection. Hoffmann kills Schlémil in a duel, and takes the key to Giulietta’s boudoir from his neck. She urges him to flee, but he declares his passion for her. After a rapturous duet, she asks for a remembrance – his reflection – and he agrees. Hoffmann is arrested for Schlémil’s murder.

Exhausted and drunk, Hoffmann has finished the tale of his three loves. When Stella sweeps in after the performance, surrounded by admirers and looking for Hoffmann, the poet insults her and Lindorf. The Councilor leaves with the Diva. The Muse comforts Hoffmann, encouraging him to pour his energy into poetry.