ACT I
A pearl-diving village in the Far East. As the villagers prepare for their dive, they sing of their fear of the sea. Zurga tells them they must choose a leader, and they unanimously swear loyalty to him. Nadir returns to the village after spending a year away. He and Zurga recall that their friendship was almost destroyed when they both fell in love with a Hindu priestess. Nadir swears he has kept the vow they both made to protect their friendship by staying away from her.
Nourabad, the High Priest, brings a priestess to the village. She is to sing and pray all night to calm the demons of the deep and to ward off the spirits of the storm. Although she is veiled, Nadir immediately realizes she is Leïla, the priestess he still loves. Zurga, who does not recognize her, imposes an oath of obedience upon her on pain of death. Leïla is to remain veiled and pure. Her reward for keeping the divers safe from harm will be their finest pearl. Nadir, alone, reveals that he and Leïla have met illicitly and that he has followed her to the village. He listens as she begins her incantation and, unable to resist any longer, calls out to her. She breaks off, answering his love.
ACT II
Nourabad tells Leïla that the divers have returned safely and she can now sleep until morning in the temple. He stresses the importance of her vow. As proof of her ability to keep her promise she tells him how, as a little girl, she once protected a fugitive. The man she saved gave her a necklace, which she wears to this day. Alone, Leïla dreams of Nadir, who soon appears by the shrine where she sleeps, and they are reunited. As a storm breaks out, they are discovered and denounced by Nourabad, who blames them for the tempest. Zurga protects his friend from the fury of the villagers, who demand his immediate death. Nourabad tears off Leïla’s veil. Zurga finally recognizes Leïla and realizes that Nadir has betrayed their oath. He angrily demands death for the guilty couple.
ACT III
The storm has died away but the village has suffered terrible damage from flooding. Zurga’s anger has passed and he sadly reflects on Nadir’s fate. Leïla intercedes for Nadir and Zurga relents, but his jealousy reawakens when he realizes how much Leïla loves his rival. He allows Nourabad to take her to be sacrificed together with Nadir. Before she leaves, she gives her special necklace to one of the young divers and asks her to give it to her mother. Zurga seizes the necklace with a cry.