When she tries to turn back into the mountains she is surrounded by the returning villagers, who tease and torment her and the hunchback, until Manru comes to their rescue. But his arrival only awakes the villagers' wrath, they fall upon him and are about to kill him, when mother Hedwig comes out and warns them not to touch the outlaws on whom her curse has fallen.
The second act takes place in Manru's hiding place in the mountains. The gipsy is tired of the idyll. He longs for freedom and quarrels with his wife, whose sweetness bores him. She patiently rocks her child's cradle and sings him to rest. Suddenly Manru hears the tones of a gipsy fiddle in the distance; he follows the sound and soon returns with an old gipsy who does his best to lure him back to his tribe. But once more love and duty prevail; and when Ulana sweetly presents him the love-philtre he drains it at one draught, and immediately feeling the fire of the strong and potent drug, he becomes cheerful and receives his wife, who has adorned herself with a wreath of flowers with open arms.
In the third act Manru rushes out of the small, close hut. His intoxication is gone; he gasps for air and freedom. Wearily he stretches himself on the ground and falls asleep. The full moon, shining on him, throws him into a trance, during which he rises to follow the gipsy tribe whose songs he hears. In this state he is found by Asa, the gipsy queen, who loves him and at once claims him as her own.
But the tribe refuses to receive the apostate, and their chief Oros pronounces a terrible anathema against him. However Asa prevails with her tribe to pardon Manru.
Oros in anger flings down his staff of office and departs, and Manru is elected chief in his place.
Once more he hesitates, but Asa's beauty triumphs; he follows her and his own people.
At this moment Ulana appears. Seeing that her husband has forsaken her, she implores Urok, who has been present during the whole scene to bring Manru back to her.—Alas, it is in vain. When Ulana sees Manru climbing the mountain path arm in arm with Asa, she drowns herself in the lake.
But Manru does not enjoy his treachery; Oros, hidden behind the rocks is on the watch for him and tearing Asa from him, he precipitates his rival from the rocks into the lake.