
Set in Vienna in the 1890's, Alfred has come to woo his old love, Rosalinde, who is married to Gabriel von Eisenstein. Eisenstein is due to serve a two week sentence in jail for a civil offense and Rosalinde says her goodbye, not realizing that he intends on attending a masquerade ball to charm the ladies and give himself pleasant memories to tide him over while incarcerated. She discovers Alfred, and though she plays hard to get, she immediately falls back in love with him. But Frank, the jail warden, interrupts this intimate moment and mistakes Alfred for Eisenstein. Rosalinde convinces Alfred to go along with Frank to save her good name.
Rosalinde attends the masquerade, only to be wooed by her own husband. Neither recognizes each other at first, but when Eisenstein pulls out his watch, Rosalinde keeps it as a "token of affection" or rather, proof of his flirtation. At 6am, Eisenstein leaves for his term in jail.
When he arrives, he finds his cell already occupied by an imposter Eisenstein who was taken from his own home and was with Rosalinde. He quickly disguises himself as a lawyer just as Rosalinde enters the jail. She has arrived to release Alfred and file for a divorce. She divulges her flirtation to the "lawyer" and Eisenstein reveals himself and accuses her of promiscuity. She volleys the same accusation back, showing him the watch. Guests from the ball arrive in time to sing to the reconciliation of Rosalinde and Eisenstein as he is taken to the jail cell.
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