Sir Ethais and Sir Phyllon were in Act I, and they are similarly impressed with him. Lutin is so taken with Fairyland that he calls it Paradise and assumes he must be dead. The fairies explain the situation, and they all vie for his attention, saying that they prefer his rugged appearance to men that are handsome. Zayda persuades all the other fairies to find food for Lutin. When they have left, she tells him that all of the other fairies have faults, and that she is the only fairy worthy of his esteem. When the other fairies return, they ask Lutin if he has a wife. He replies that he is married down below, but is a bachelor in Fairyland, which offends Zayda. Darine enters, desperately seeking Lutin's aid to cure Sir Ethais. She is the fairy counterpart to Lutin's mortal wife. Lutin does not understand this and assumes his wife has followed him there to chastise his infidelity. After a lengthy misunderstanding, Darine finally gets through to Lutin, and he gives her a phial with the magical cure for Sir Ethais's wound. Darine contrives a ruse to win Sir Ethais's love. She tells him that Sir Phyllon had accused him of exaggerating the severity of his wound, so that he could avoid fighting again. Sir Ethais is outraged at being called a coward, and wants to challenge Sir Phyllon if he ever recovers. Darine tells him that she has the cure, but she will give it to him only if he promises to love her. Sir Ethais agrees, and observing that one beautiful woman is as good as another, gives Selene's ring to Darine. He takes the potion, and is cured. Sir Phyllon enters, and Sir Ethais accosts him. Their argument escalates, and Sir Ethais turns to Darine to confirm that Sir Phyllon had accused him of cowardice. Darine admits that this was only an artifice. Sir Ethais asks Sir Phyllon's forgiveness and renounces Darine. She implores him to reconsider. Selene enters. She wonders why her sister is alone with Sir Ethais. Darine calls Selene a hypocrite. The other fairies now enter, and tell Selene that she is the source of all the ill that has blighted Fairyland. They urge her to relinquish the throne in favour of Darine. Admitting that she has been an unfit Queen, she takes off her crown and places it on Darine's head.