Act One
Under the blazing Andalusian sun, there is a bustle of activity in the square in front of a cigarette factory. Soldiers, children, and passersby come and go. Among them is the dutiful soldier Don José, who quietly and conscientiously performs his duties. Then Carmen, a worker in the factory, appears. With her famous “Habanera,” she attracts everyone's attention, seductively playing with the men, teasing them, laughing, and even Don José is not left untouched. When Carmen throws him a rose, it is as if she has thrown an invisible bond between them, a bond that draws Don José to his doom. At that moment, Micaëla, a young girl from Don José's home village, arrives in the square. She brings him a letter from his mother. For a moment, Don José remembers his former, simple life. José wants to resist Carmen's temptation and marry Micaëla, as his mother wishes. But when Micaëla leaves, Carmen's impetuous presence returns and supplants any thoughts of duty and home.
Soon after, a dispute breaks out in the factory between Carmen and another worker. Carmen injures her colleague with a knife and is arrested. Don José is ordered to take her to prison. With words as seductive as a dance, Carmen ensnares the soldier and persuades him to release her. In return, she promises him a hot and wonderful night in the tavern of a friend named Lillas Pastia. Don José thus gets himself into serious trouble.

Act Two
A few weeks later: Carmen and her friends Frasquita and Mercédès are celebrating in ill-reputed company at the tavern of Lillas Pastia. It is a lawless place of music, dance, and free-spirited revelry. The celebrated bullfighter Escamillo appears, charming and self-confident, surrounded by admirers. He also shows interest in Carmen, but she playfully rejects him.
Don José, who was imprisoned because of Carmen's escape, seeks her out after his release, torn between his love for her and his duty as a soldier. When the signal for roll call sounds, he must return to his unit. But Carmen mocks his obedience and urges him to stay with her. Driven by passion and jealousy, Don José disobeys his orders and deserts. From now on, he has no choice but to join the group of outlaws.

Act Three
High up in the mountains of Andalusia, Carmen, Don José, and the smugglers have barricaded themselves in a remote gorge. Living among the rocks and smuggler trails, they subsist on the spoils of their risky ventures.
But their life together brings no peace. Carmen longs for freedom, while Don José becomes increasingly possessive and jealous. Their love begins to crumble. In a last attempt to bind Carmen to him, Don José gives her a ring as a sign of his unwavering love. While the smugglers prepare for their next venture, Frasquita and Mercédès pass the time by reading cards. The cards predict happiness and love for Frasquita and Mercédès, but death for Carmen. Her fate seems sealed. Then Micaëla appears, having bravely ventured into the mountains. She begs Don José to return to his dying mother. But before he can decide, Escamillo arrives, looking for Carmen. A fight breaks out between the two men, which Carmen ends. Only when Micaëla brings him the news of his mother's death does Don José reluctantly leave the hideout. But he swears to Carmen that he will return.

Act Four
There is a festive atmosphere in front of the bullring in Seville. The crowd cheers as the celebrated bullfighter Escamillo enters. At his side is Carmen, who is now openly his lover. Her friends Frasquita and Mercédès warn her that Don José is in town, desperate and unpredictable. But Carmen remains undeterred. She fears nothing and follows her own law of freedom. As the procession disappears into the arena, Don José steps out of the shadows. He pleads, begs, threatens, but Carmen remains steadfast. Her freedom is more precious to her than love and life. As a clear sign of her intention, she throws the ring he once gave her at his feet. Don José, in a frenzy of despair, pulls out a knife.

While the arena erupts in cheers for Escamillo's victory, Carmen dies at the hands of Don José.