Act One

The Narrator welcomes us to the town of Baltese ("Welcome to Baltese"), where something extraordinary happened involving a boy named Peter Duchene - and magic!

Peter is having a dream when his guardian Lutz takes him out of his reverie. Lutz was a soldier with Peter's father, who made him promise to look after his son. Lutz scolds Peter for his constant daydreaming and sends him to the market to buy food ("Discipline, Control, Routine"). The townspeople go about their day, keeping themselves busy to avoid thinking about the war Baltese just survived.

Peter is at the Fishmonger's stand when a red tent appears, seemingly out of nowhere. Peter is shocked that only he can see it. A voice from inside the tent says they can answer "Profound and Difficult Questions".

Inside the tent, Peter tells the Fortune Teller that he keeps having a dream where he hears a baby crying. The Fortune Teller reveals the baby is his sister; Lutz had told Peter that she died with his mother. When Peters asks how he can find her, the Fortune Teller answers: "Follow the elephant. She will lead you."

Peter leaves the tent perplexed and unsure about who to believe ("If This Is True"). Meanwhile, the Narrator brings us to the town opera house, where a Magician has conjured an elephant onstage! ("The Elephant Appears") Madame La Vaugh's legs are tragically crushed by the elephant. Horrified, the audience flees onto the streets while the Magician is arrested. The Police Chief orders officer Leo to put the Elephant in jail, worried that the Countess will fire him if word gets out.

Leo is in a state of wonder over what has happened ("What If, Why Not, Could It Be?") when he gets home, right below Lutz and Peter's apartment. Leo tells his wife Gloria that tonight has proven that magic is real and that maybe there's still hope for them to start a family. Gloria, however, has given up on that dream.

Back in the town square, the Police Chief and Officers are bringing the Elephant to jail, hoping they won't be seen ("No One Must Know Anything"). Peter hears the commotion and comes out to confront them. The police tell him "Your Mind's Playing Tricks On You."

The following morning, a rumor about an elephant is going around town ("Discipline, Control, Routine (Reprise)"). Peter learns the elephant is being held in jail. As he rushes off to find her, the townspeople look up at the dark night sky in wonder.

In his jail cell, the Magician declares his innocence and swears the elephant was an accident ("Lilies"). Peter arrives at the police station and asks if he can see the elephant. The Police Chief denies it, and Lutz arrives to take Peter home.

On their way home, Lutz denies that Peter's sister is alive and insists she died with his parents during the war. That night, Peter dreams of his parents.

By daybreak, Baltese is abuzz with excitement and obsession over the elephant ("Elephant Messiah"). A new dance craze takes over the town ("Elephant Stomp/Commercials"). Jealous of the attention focused on the elephant and with help from her husband the Count, the Countess devises a plan to house the animal as a noble act of charity ("Follow the Elephant - Charity").

The Countess announces that she will put the elephant on public display ("Operation Elephant"). Peter tells Lutz that he is going to visit the elephant so he can be led to his sister as the Fortune Teller told him. Lutz confesses that his sister survived birth, but he gave her away. Peter renounces him and heads to see the elephant, who is being held in the Countess's ballroom ("Finale - Act One").

Act Two

Everyone is lining up to see the elephant ("The Sight of the Elephant"). Waiting in line, Peter realizes the dream he keeps having is actually his memory of his sister's birth. In his memory, Peter's mother has him promise to care for his baby sister.

The Narrator take us to an orphanage outside of Baltese ("Sisters of Perpetual Light"). In this orphanage is a very imaginative and adventurous little girl named Adele ("Adele the Brave").

As the crowd prepares to enter the Countess's ballroom ("Announcing the Elephant"), Peter sneaks inside. Face to face with the elephant, Peter sees himself in her ("A Lot Like Me"). The elephant is clearly getting sick in captivity and is at risk of dying. When Peter declares that the elephant must be freed, the Countess accuses him of ruining her reputation and taking away the town's happiness. The townspeople chase him ("Don't Spoil It for the Rest of Us"). Adele and the orphans, led by Sister Marie, sing in the town square to collect money. On the run, Peter hides behind them and tells them about the elephant. Peter meets Adele but has to rush off to escape the mob before he can further talk to her. The Countess follows him in pursuit. Adele asks the Countess if they can see the elephant. Infuriated, the Countess drags Adele with her.

Peter is hiding in Gloria and Leo's apartment. He explains to them he needs to find the Magician in jail so the elephant can be sent back home. When he tells Gloria about the Fortune Teller, she dismisses it. A fortune teller once told her she and Leo would have a house full of children, but it's not possible - magic is not real ("Real Magic"). Yet Peter softens her heart. Leo and Gloria agree to help Peter, and they come up with a plan together.

Back in the Countess's ballroom, Adele and the elephant are in chains. The Count sneaks in to hide from the Countess and laments about how invisible he feels ("The Count Who Doesn't Count"). Adele convinces him to set the elephant free. The Countess barges in and finds that the elephant has escaped. Adele throws a bucket of dung at her and chains her up with the Count.

Peter pushes Madame La Vaughn through the streets of Baltese. They meet Leo and Gloria, who have brought the Magician with them. Just as the mob catches up to them, the elephant appears. Peter explains that the Magician needs to send the elephant back home. The townspeople accuse him of taking away Baltese's hopes and dreams, but Peter insists the elephant will die if she stays there ("So What If Our Dreams Come True"). The Magician asks for Madame La Vaughn's forgiveness. With help from Peter and the townspeople, he casts a spell that sends the elephant home ("Sacred Spell").

Adele and Peter meet again in the town square. Peter recognizes her name and hat from his dreams. He shows Adele that they both have the last name "Duchene" embroidered inside their hats. At long last, brother and sister are reunited ("A Lot Like Me (Reprise)") It begins to snow in Baltese for the first time in over a hundred years. Madame La Vaughn forgives the Magician.

As everyone looks up at the starry night ("Anything Could Happen"), the scene changes to back to Peter's building. He and Adele bring stew to Lutz. Downstairs, Leo and Gloria, who have adopted Lissette, have the Magician and Madame La Vaughn over for dinner. The Narrator tells us that Baltese will forget the story of the elephant over the years, but magic can always happen again. As they story ends, we see the elephant is back home in the jungle.