The description recounts the deterioration of relations between Carmen and Jose, while their friends witness their fate. The conflict intensifies when Michaela arrives in an attempt to rescue Jose from Carmen, leading to a knife fight and further confrontations. Ultimately, Jose decides to leave Carmen after his mother is on her deathbed, but he threatens that they will meet again.
Since joining the smuggling gang, Carmen and Don José’s relationship has deteriorated. When he tells Carmen that his mother lives in a nearby village, she mocks him and suggests he return to the village. Meanwhile, Frasquita and Mercedes read their fortunes in cards, predicting great wealth and love. Carmen joins them, but the cards foretell death for both her and Don José. The smugglers set out on a mission, leaving Don José to guard the camp. Micaëla arrives, searching for Don José in hopes of saving him from Carmen, just as Escamillo also comes to the camp. He introduces himself to Don José and explains that he has come to meet Carmen, as he is in love with her. Don José challenges Escamillo to a knife fight, and they battle until the smugglers return and separate them. Escamillo invites the smugglers to his upcoming bullfight, and as everyone prepares to leave, Remendado discovers Micaëla hiding. She tells Don José that his mother sent her to persuade him to return home with her. Carmen encourages him to leave, but he swears he will not let her go off with her new lover. In a desperate attempt to convince him, Micaëla informs Don José that his mother is dying and wishes to see him. He decides to leave, threatening Carmen that they will meet again.