His Grace the Duke of Plaza Toro (Count Matadoro, Baron Picadoro), Her Grace the Duchess, their beautiful daughter Casilda, and their drummer, Luiz, now arrive in Venice from Spain. They have come to meet Don Alhambra del Bolero, the Grand Inquisitor of Spain. As Luiz goes to announce the Duke's presence, the Duke and Duchess tell their daughter a secret that they have kept for twenty years – when she was only six months old, she was married to the infant son and heir of the King of Barataria. She is indignant, since the union was conducted without her consent. The infant prince was taken from his home by the Grand Inquisitor, after the king of Barataria became a Wesleyan Methodist "of the most bigoted and persecuting type", and taken to Venice. The King of Barataria was recently killed in an insurrection, and the hidden prince is now king. As the wife of the new king, Casilda is now the reigning queen of Barataria, and her parents have brought her to meet with the Grand Inquisitor to be introduced to her husband. We soon discover, however that Casilda is secretly in love with Luiz. Left alone together, she tells him of her infant marriage, and they resign themselves to a life forever apart, with only their happy memories to comfort them.