The Prince stumbles upon a lake in the forest, full of magnificent swans. Siegfried takes aim with his new crossbow. Before he can shoot, the swan transforms into a beautiful woman! He is instantly enchanted by her elegance. Odette, the queen of the swan maidens, is terrified at first. Siegfried assures her that he means no harm. The two begin to trust each other, quickly falling in love. Odette shares that all of the swans are under the spell of Baron Von Rothbart, cursed to be swans by day and human only by night. Nothing but faithful love is powerful enough to break the spell. Siegfried promises eternal love to Odette. She warns Siegfried that if the vow is broken, all will be lost.  

The two are interrupted by Baron Von Rothbart himself! The magician sweeps in and rushes the swans away from the Prince, angry that someone has learned of their plight. Siegfried is left alone by the lake, until his friend Benno finds him and persuades him to return to the party.