Peppina has concealed herself behind some trees. Prince Ferdinand relates how he has received orders from his father to inspect the regiment, but that he made Pepusch take his place. A few minutes later Pepusch turns up and admits, that he has not carried out Prince Ferdinand's command.

The young Prince then confides to Pepusch, that he has made arrangements for a grand fête which is to take place that same evening, to which he has invited a large and select company. All this Pepusch knows already from Peppina. But when the Prince invites him to take part with a performance of his "hog-canon", he is beside himself, knowing well that Emanuele insinuated this idea to the Prince, simply to expose him to ridicule. The Prince however insists, and when he goes away, Peppina comes out of her hiding place and shares Pepusch's despair.

Vainly Pepusch tries to find some new musical motive, to enhance his quartette's effect, when suddenly Peppina begins to sing. Involuntarily he grunts an accompaniment. All at once he starts and exclaims "Ah, now I have it". After embracing Peppina he hurries away. The primadonna gets up too, but runs right into old Prince Eberhard, who calls out "What! A woman in my royal domains! Who is it?!" Peppina, unintimidated replies: "I am a Tyrolese singer and who are you?" When the prince tells her who he is she retorts: "Nonsense, Prince Eberhard is away at the manoeuvres." When she has charmed the old prince sufficiently by her marvellous trills and scales she tells him, that although she has all Italy and France at her feet she cares most of all for the good opinion of Prince Ferdinand, young though he is.

Prince Eberhard is half pleased, half angry, and complains, that there is never praise for any one save his son. Drawing forth a note, he shows her, that he is informed of the evening festival, which is to take place in his absence. Hearing this, Peppina informs him of the plot, which has been meditated against poor Pepusch, and intimates, that the whole thing is owned to the false Italian Maëstro, who wants to make the German composer a laughing stock for the foreign guests, who are expected not only to hear the famous flute playing of Prince Ferdinand, but especially herself, the famous Primadonna. She is to be engaged for the Vienna opera by a Viennese count, coming expressly on her account. Hearing all this, Prince Eberhard first flies into a passion, but soon he calms himself and tells Peppina to be without fear for Pepusch's future, as he, Eberhard, will not fail to be present at the soirée.

When Pepusch appears, he finds the two executing a droll dance together. Peppina seizes the prince's hand and tells him that she and Pepusch are in love with one another. All three vow, that they will give the audience a surprise at the fête, Pepusch saying his will be the "Flauto Solo".

Preparations for the festival are carried on with the aid of all kinds of decorations during which Pepusch is busily employed finishing his new composition.—Prince Ferdinand arrives followed by his suite, receiving his guests gracefully. After having presented Pepusch he commands him to conduct his chef d'oeuvre. Pepusch, taking out a score of music, announces, that a young pig was born during the night, necessitating a Solo flute. He hands the Prince the melody, intimating that the great Maëstro Emanuele should play it. Much to Emanuele's disgust, Prince Ferdinand takes Pepusch's part in the quarrel, which the Italian attempts to bring about.

Suddenly the old Prince arrives and orders his son to perform Pepusch's new melody on the flute. Prince Ferdinand unwillingly obeys, and plays the solo part so splendidly, that the audience breaks out into endless applause.

Prince Ferdinand cordially begs Pepusch's pardon for his injustice and calls his new composition a real master piece. Pepusch is however honest enough to admit, that the melody, which he first heard Peppina sing, was originally Emanuele's idea, upon which the guests cheer both conductors.

Prince Eberhard, on the other hand, praises his son's skill on the flute most highly and admits, that Prince Ferdinand will as a ruler in all probability become as great a virtuoso, as he has proved himself a great artist.—