This scene transports its viewers from Athens into the woods outside of the city, the dwelling place of Oberon, Titania, and their band of fairies. The scene begins with a conversation between Oberon's mischievous elf Robin Goodfellow, also known as Puck, and one of Titania's attendants. Puck warns her to keep Titania away from this part of the woods because Oberon will be reveling here, and if the two meet there will certainly be a serious quarrel. Oberon is angry with Titania because she refuses to give him a sweet Indian boy upon whom she dotes. Titania's attendant suddenly recognizes Puck, accusing him of being the hobgoblin who is blamed for roguish acts in the village, such as frightening young women or misleading night travelers. Puck admits that he is this "merry wanderer of the night."
Suddenly Oberon and Titania enter the scene from opposite directions. Their bickering begins. Each accuses the other of having had affairs, and Titania says Oberon's persecution of her has caused the current chaos in the world: The rivers are flooding, the corn is rotting, and people are plagued by "rheumatic" diseases. Oberon blames Titania; if she would simply relinquish the Indian boy, peace would be restored. Titania refuses to let the boy go because his mother was a close friend of hers, and when she died in childbirth, Titania agreed to raise her son.
