The act opens with a comic scene in the king's palace. The clown appears, bursting with the secret of the king's love for Urvashi, which has been confided to him. He is joined by the maid Nipunika, commissioned by the queen to discover what it is that occupies the king's mind. She discovers the secret ingeniously, but without much difficulty, and gleefully departs.
The king and the clown then appear in the garden, and the king expresses at some length the depth and seeming hopelessness of his passion. The latter part of his lament is overheard by Urvashi herself, who, impelled by love for the king, has come down to earth with her friend Chitralekha, and now stands near, listening but invisible. When she has heard enough to satisfy her of the king's passion, she writes a love-stanza on a birch-leaf, and lets it fall before him. His reception of this token is such that Urvashi throws aside the magic veil that renders her invisible, but as soon as she has greeted the king, she and her friend are called away to take their parts in a play that is being presented in Paradise.
The king and the clown hunt for Urvashi's love-letter, which has been neglected during the past few minutes. But the leaf has blown away, only to be picked up and read by Nipunika, who at that moment enters with the queen. The queen can hardly be deceived by the lame excuses which the king makes, and after offering her ironical congratulations, jealously leaves him.