The ballet is set in Scotland. James is on the eve of marrying Effie. Gurn also loves Effie. James is distracted by a vision of a lovely sylph. Old Madge, a witch, reads palms. She declares Gurn will be the husband of Effie. James grows angry and throws her out into the storm. The wedding preparations start. The sylph appears and steals the wedding ring. James runs after her into the forest. Effie is consoled in the arms of Gurn. 