- 1875 - Opéra comique It is two months later. Carmen and her friends Frasquita and Mercédès sing and dance. Lillas Pastia is trying to get rid of the officers, so Zuniga invites Carmen and her friends to come with him to the theatre, but she can only think of José, who was demoted and has been in jail since letting her escape, and was released the day before.
The sound of a procession hailing Escamillo passes by outside, and the toreador is invited in. Escamillo sings the Toreador song, and flirts with Carmen, but Carmen tells him that for the time being he need not dream of being hers.
When everyone except Carmen, Frasquita and Mercédès have left, the smugglers Dancaïre and Remendado arrive and tell the girls of their plans to dispose of the contraband they have smuggled via Gibraltar. Carmen refuses to accompany them, saying to their amazement that she is in love.
As José's voice is heard, Dancaïre tells Carmen she must try to get Don José to join them. Alone together, José returns a gold coin Carmen had sent him in jail and she orders fruit and wine to be brought.
Carmen vexes him with stories of her dancing for the officers but then dances with castanets for him alone. During her song the sound of bugles is heard calling the soldiers back to barracks.
Carmen's temper flares when José says he must leave, but he makes her listen by producing the flower she threw at him, which he kept while he was in prison and is proof of his love. Carmen is unmoved and asks him to join her gipsy life if he really loves her.
Her picture of a life of freedom tempts him but he finally refuses saying he will never be a deserter. He begins to leave when Zuniga enters hoping to find Carmen. Don José draws his sword on his superior officer, but before they can fight the smugglers burst in and disarm both of them. Zuniga is made a prisoner and José has no alternative but to flee with Carmen.