Theseus hosts the characters at his palace. With Hippolyta, he discusses the story of how they found the young Athenians in the woods and the possibility that the fairies had a hand in the youths’ situation. Theseus does not believe this, as he thinks the youths were simply confused by the darkness and the strength of their emotions. Hippolyta points out that Lysander, Demetrius, Helena, and Hermia all told the same story, even though they did not confer with one another. She believes this adds credence to the possibility of a magical mix-up.

Helena, Hermia, Lysander, and Demetrius arrive. Theseus is happy to see them and suggests that they spend the evening watching a play. He calls on Philostrate to list all the plays that they can view. As Philostrate works through the list, Theseus dismisses each one. Philostrate has one final proposal: A group of local laborers have been working on a production of Pyramus and Thisbe. Philostrate warns that the play is awful and advises Theseus not to watch it. Theseus dismisses Philostrate’s criticisms. He believes that if the laborers are sincere and dutiful, then the play will have some good qualities no matter how terrible the performances are.