Setting: Haroun's palace, in Cairo At the end of day the caliph Haroun reclines and smokes in his palace, with his servant Splendiano; an off-stage chorus sing. The slave-girl Djamileh passes through the room unseen by Haroun, gazing tenderly at him. Splendiano is looking over his master's accounts when Haroun asks Splendiano where Djamileh is – and is told that she is near at hand, still in love. He remarks also that she will be disappointed as her month as lover to the sultan is nearly finished and she will be replaced. Haroun denies that he is in love with her and demands that she be sent away and a new girl brought. Splendiano confides that he is taken with Djamileh. Haroun's heart is a desert: he loves no woman, only love itself. This gives hope to Splendiano that he will have Djamileh.
Haroun asks for supper to be served. Djamileh enters, dejected, and tells him of a bad dream she had where she was drowning in the sea, looking for him to save her, but there was no one. Haroun, aware of some affection for her, reassures her, and supper is served.
Haroun offers Djamileh a necklace. His friends arrive to spend the night playing dice. Before Djamileh can leave she is seen by the men who express their admiration; Djamileh is left hurt and confused, while Splendiano feels sure he will succeed in his conquest. He explains to Djamileh that she must leave and regain her freedom - and offers his love. She proposes that he present her to Haroun, disguised as the next slave-girl, and promises that if she fails to win Haroun's heart that way she will give herself to Splendiano. Alone, she expresses her anxiety about her destiny and the fragility of love.
To Haroun's irritation, Splendiano interrupts the gambling to say that the slave merchant has brought a new girl, who then dances an almah; Haroun remains indifferent and returns to the game. Splendiano asks the merchant to replace the dancer with Djamileh, while being certain that she will soon be his.
Veiled, Djamileh enters in the dancer's costume and, shy and nervous, makes to leave. Haroun, whose interest is now aroused, sends Splendiano to take his place at the games table.
Djamileh cries, but Haroun consoles her. As moonlight illuminates the room, Haroun recognizes her and begins to realize that she loves him. He tries to resist his own feelings but eventually gives in. Splendiano has lost.
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