The story takes place in Spain during the occupation of Napoleon's army. The heroine is the young Gypsy girl, Paquita. She is really of noble birth. She was abducted by Gypsies when she was an infant. She saves the life of a young French officer, Lucien d'Hervilly. He is the target of a Spanish governor who desires to have him killed by Iñigo, a Gypsy chief. Paquita discovers that she is of noble birth. She is in fact the cousin of Lucien. She and Lucien marry.