A tobacco factory and the barracks of the dragoons open out onto the main square of Seville. People are coming and going. A young girl makes her way through the crowd. She has an air of bewilderment and approaches the guards shyly, saying she is looking for Brigadier Don José. They tell her he will soon be here and invite her to wait with them. Intimidated, she declines and wanders away.
It is time for the changing of the guard. A new platoon arrives, followed by a group of young rogues who mimic the march of the soldiers. Don José is with them. His fellow soldiers tell him of the girl’s visit and, from their description, he deduces it was Micaela, an orphan who his mother has welcomed into their home.
A bell rings and everyone’s eyes turn to the cigarette-makers as they walk out of the tobacco factory. The men rush to the entrance to admire them close-up. The girls enjoy flirting. Among them is Carmen, a beautiful and sensual gypsy. Well-aware of her charm, she sings a song which is full of allusions and from which it is clear that she does not believe in the constancy of love. Don José pays no attention to her. Carmen notes his indifference and so she provocatively throws him a flower, much to the delight of the crowd. Shocked by such brazenness, but also disturbed by it, he picks up the flower and instinctively hides it under his coat.