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The star of the cabaret, Sylva Varescu gives a concert before her departure to America. Among the Sylva's fan Feri von Kerekes organizes an entertainment for Sylva between friends. Prince Edwin, who is falling love with Sylva, is also there.
General Rohnsdorf comes to Budapest for bring back Prince Edwin, who forced to marry with his cousin Mademoiselle Stati, to Vienna. Edwin was against to this marriage since the beginning. Moreover nobody knows in Budapest this marriage issue. But Count Kanscianu (Boni), friend of Sylva and who prepares to go to America with her, learns Edwin's news of marriage when he is alone with General Rohnsdorf. Despite of all the objections of his family for several months, Prince Edwin who doesn't give up on Sylva, propose marriage to her. When Sylva accepts his proposal, before a notary Edwin signs the contract undertaking that they will get married in eight weeks. Sylva doesn't go to America, she waits for Edwin who has to go to Vienna for a short time. Edwin departs happily to Vienna.
When Count Kanscianu (Boni), unaware of the events, comes back to the cabaret, Sylva tells him the happy news; She will get married with Edwin. Boni shows Edwin's wedding invitation to Sylva by saying that he is about to marry with Mademoiselle Stasi. Thinking that she is deceived by Edwin, Sylva decides to go to America.
ACT II / SCENE I
The mother of the Prince Edwin, Princess Marie Luise, organized an entertainment for announcing the engagement of Madamoiselle Stasi and Edwin. Edwin, didn't get news from Sylva for a long time, is desperate and he doesn't want to get engaged with Stasi.
Sylva who came to see Edwin to the palace, made a plan and she convinced also Boni for this plan in order to take vengeance from Edwin. Sylva introduces herself as Countess Kanscianu as if she got married with Boni. While Edwin gets crazy with the news of this marriage, Boni fell in love with Madamoiselle Stasi when he saw her.
Although Edwin and Sylva try to make each other to be jealous with Stasi and Boni, they confess their love when they are alone. Edwin wants Sylva to divorce from Boni. In this way nobody will know that Sylva is a singer of cabaret. Because of everybody will know her with noble title of a Countess, they can get married easily. This is the only way that they can be happy together. But she feels upset about being not introduced as 'Sylva' the cabaret singer by Edwin to his family.
When Princess announces his niece Stasi and his son Edwin's engagement, Edwin tells that he loves someone else. When he introduces Sylva as a noble title of Countess Kanscianu, Sylva explains her true identity by showing the contract of the marriage signed by Edwin. She is Sylva Varescu, the cabaret singer...
ACT II / SCENE II
Sylva feels very upset from the happening. She thinks that Edwin cannot accept her being Sylva Varescu. At the moment Feri comes in. Feri came on tour to Vienna with the girls of singer from The Orpheum Cabaret Theater. Although this surprising welcome makes everybody happy, Feri notices Sylva's sadness. Succeeding to persuade Sylva to come back to the stage, Feri enters to the concert hall with Sylva. Edwin wants Boni to pay for the happening. While Boni confesses the game of the marriage that Sylva and he played, Princess comes to find Edwin.
Edwin hides because he doesn't want to meet with his mother. Boni tells to Princess that he fell in love with Stasi and that he wants to get married with her.
Feri, meeting at the first time with Princess, asks her to be tolerant to Edwin and Sylva and tells her his own story. When he was young, he also loved a cabaret singer but she got married with someone else. A lot of things in the life of the Princess will be changed by the Feri's story. Stasi, coming to the hotel to see Boni, has only one condition to accept his proposal of marriage; The coming together of Edwin and Sylva. Boni has a great plan for bring Edwin and Sylva together.