On the island, Ferdinand is carrying a log (branch of a tree). He has been ordered by Prospero to pile them up. He is thinking of how delightful such a base job has become when it is done in the thought of Miranda.
Miranda sees him and asks him to stop doing such a job for a while and let her do in his place. She is full of affection for Ferdinand and Prospero notices all this while hiding away from both. He is happy because his plan to bring both of them together is now working perfectly.
Miranda reveals her name to Ferdinand. Ferdinand tells her how full of virtue she is unlike other women he saw earlier who were only partially good. Miranda confesses her feelings which is that she wants no other men.
If it is not Ferdinand then she’ll spend the rest of her life as his maid. Ferdinand reveals that he is a prince and he loves her truly. Both of them commit to each other and Miranda leaves, Prospero rejoices at this sight.
In another part of the island, Caliban along with Stephano and Trinculo has been drinking. Stephano and Trinculo are talking about the island and Caliban, the “servant monster.” They talk all stupid and ask Caliban to say something at least. They address him as moon-calf.
Caliban asks Stephano whether he can lick his shoe. Trinculo accuses him of a lie, due to which he asks Stephano to order him to control himself. Ariel enters the scene and remains invisible to all of them.
Caliban pleads to Stephano to kill Prospero so that he can become the king of the island. He tells him all about Prospero and how to kill him. He tells him of Prospero’s daughter who can become Stephano’s queen.
Caliban asks him how soon he can kill Prospero and it makes him very happy. They get confused when Ariel plays music. Caliban assures them about this nature of the island and they leave. Ariel leaves to inform Prospero about all these.
Alonso, Sebastian, Antonio, Gonzalo, Adrian, Francisco, and others are looking for the king’s lost son in another part of the island. Gonzalo gets tired and asks Alonso to rest and all of them agree. Alonso reveals his loss of hope to find Ferdinand who, he believes, is dead already.
Antonio and Sebastian take it as a good sign and plan to kill him that very night. Prospero invisibly enters the scene at this moment and spirits created by him bring a banquet (food) and place before this group.
All of them are surprised at this sight and Sebastian suggests that they should eat it nevertheless. Ariel comes and vanishes the whole banquet and reveals that it is but him who carried out the whole plan of bringing them to this island. He reminds them of his master and the injustice they did to him.
Prospero feels better and leaves the scene. Alonso understands that it is Prospero and he starts feeling his guilt and others leave after him. Gonzalo reflects upon their guilt and his physical weakness to follow them.