A ball is to be held that evening at the Pontevedrian Embassy to celebrate the birthday of the Grand Duke, the sovereign of the Grand Duchy of Pontevedro, and Kromow and Pritschitsch are keen to leave their desk work and join the festivities. Camille is also anxious to leave work. However, before they can leave, Njegus arrives and instructs the three men to return to the desk to take care of some extra papers he is carrying. Discovering that Danilo is missing, Njegus enquires where he is, and Kromow and Pritschitsch comment that Danilo is out drinking. Njegus sits at Danilo's post at the desk, and together the four men go through the paperwork, following which Njegus informs them that Pontevedro is bankrupt. Baron Zeta arrives, carrying a telegram and mentioning that a rich Pontevedrian widow, Hanna Glawari, is to attend the embassy ball. The Baron wants Count Danilo to marry the widow so that her money will stay in Pontevedro. Valencienne comes into the room and then everyone drinks to the health of the Duke. The men then leave — except for Camille, who has some extra paperwork to do.