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Setting: Paris, around 1900
Act 1
It is the height of the Mardi Gras season in Paris. René, the impoverished but debonair Count of Luxemburg, is sharing a garret in Montmartre with his artist friend, Armand Brissard, who is in turn in love with Juliette Vermont, a dancer and the model for his latest painting. Meanwhile, a middle-aged Russian prince, Basil Basilowitsch, is infatuated with the young opera singer, Angèle Didier. However, he cannot marry her because she is a commoner. He offers René 500,000 francs to enter into a sham marriage with Angèle and then divorce her three months later. With title of "Countess", Angèle can then marry Prince Basilowitsch. (Attracted by the idea of eventually becoming a princess, Angèle had agreed to the plan.) The wedding takes place in Armand's studio. To ensure that no romantic complications develop, the couple are never to meet face-to-face. René promises to disappear for the next three months and a screen made from one of Armand's easels separates René and his "bride" during the ceremony. Alone after the ceremony, René looks forward to resuming his playboy lifestyle with his new-found wealth but at the same time is disturbed by the attraction he felt when he touched the unknown woman's hand through the screen.
Act 2
A party is taking place at Angèle's house on the eve of her impending divorce from René. Three months have passed during which time René has been travelling with Armand. However, on his return René has seen Angèle perform at the Paris Opera and is deeply attracted to her. Determined to meet the singer, he and Armand attend her party, with René presenting himself as "Baron von Reval". The two fall in love, not knowing that they are already married to each other. Angèle tells René of the impossibility of their love as she is about to be divorced from one man and is engaged to marry another. Prince Basilowitsch is also at the party, and alarmed at the turn of events, publicly announces his engagement to Angèle. René and Angèle now realize the true situation, but René has no money to buy himself out of the contract, having already squandered much of the 500,000 francs he had received from the prince.
Act 3
The next day in the lounge of the Grand Hotel where René has been staying since his return to Paris, he and Angèle discuss their predicament. They are joined by Countess Kokozow, Prince Basil's former fiancée. Prince Basil stumbles into her arms in a frantic search for Angèle only to hear that the Tsar has ordered him to keep his promise and marry the countess instead. René learns that his confiscated properties have been returned to him. He is now a rich man, can repay the prince, and stay married to Angèle with his honour intact. Armand and Juliette, whose relationship has often been tempestuous, arrive and announce that they too have finally decided to marry.
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