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For reasons of state, a marriage is arranged between Prince Albert and Princess Alexandra. The prince, who delights in wine and women, is uninterested in the haughty princess and initiates an intrigue with Wanda von Gluck, a beautiful lady-in-waiting. Alexandra's mother suggests that her daughter should flirt with Dr. Walter, a tutor employed at the castle, in order to excite the prince's jealousy. The princess arranges a picnic and is kind to Walter, who expresses his love. During a storm, she takes shelter with him in a hut, where they are discovered by Albert. At a drinking bout in the castle later that evening, Albert insults Walter, and the men begin to duel. Walter disarms Albert but is wounded by Albert's aide, Wunderlich. Alexandra rushes to Walter and confesses her love for him before the entire court. Albert releases her from her troth, and Alexandra's mother finally reconciles herself to a marriage between her daughter and a commoner.