It is a moonlight night at Belmont, and Lorenzo and Jessica are on the avenue leading to Portia's house. In the still evening air, the newlyweds are jokingly comparing this night to nights when other lovers — Troilus, Thisbe, Dido, and Medea — all committed romantic acts of love and daring. Lorenzo reminds Jessica that this night is very much like the night when he "stole" Jessica away, and she reminds him that on just such a night as this, Lorenzo swore his vows of love to her. She boasts that she could surpass him in producing other examples of other lovers, but she hears someone approaching. It is Stephano, who brings them news that Portia, accompanied by Nerissa, will arrive "before break of day." Launcelot then comes in, dancing and "hooloaing" and "sollaing" that his master Bassanio will arrive before morning, and he exits.
Lorenzo asks Stephano to have the musicians come outdoors and play. Silently, Portia and Nerissa enter and pause to listen. Portia remarks that music heard at night "sounds much sweeter than by day." Lorenzo hears Portia's voice and recognizes it immediately. He welcomes her home, and Portia gives orders that no one is to mention her absence. Then, as dawn is about to break, a trumpet announces the arrival of Bassanio, Antonio, Gratiano, and their followers.
Portia and Bassanio immediately exchange loving greetings, and Bassanio introduces his friend Antonio, who is graciously welcomed. Their conversation, however, is interrupted by a quarrel between Nerissa and Gratiano over the wedding ring which she gave him, and which he now confesses to have given to a "judge's clerk," a half-grown youth no taller than Nerissa. Portia tells Gratiano that he was at fault to give away his "wife's first gift." She is confident that Bassanio would never, for any reason, part with the ring which she gave him. Angrily, Gratiano tells her that Bassanio did indeed give away his wedding ring; in fact, he gave it to the "judge that begg'd it," just as he, Bassanio, gave his ring to the judge's clerk. Both wives pretend shock and anger, and they vow never to sleep with their husbands until they see their wedding rings again. Bassanio pleads in vain that he gave his ring for good reason to the lawyer who saved Antonio's life. Well, says Portia, since you have been so generous to him, if that lawyer comes here, "I'll have [him] for my bedfellow." "And," adds Nerissa,"I his clerk."
