The first act of the play opens in the penance-grove near the temple of Gauri. Jimutavahana with his friend Atreya, the Vidushaka is in search of a suitable place of residence on the Malaya Mountains, southern part of the Western Ghats, as his old parents have expressed a desire to stay there. He would spend his youth in serving the parents, as he considers such a service far above the enjoyment of the pleasures of kingdom. He had done everything in his power to make his subjects happy and had made the kingdom secure. Moving about, both of them are struck by the grandeur of the mountain and decide to stay there. Here, they happen to hear the ravishing tunes of melodious music. They enter the temple of Gauri but hide themselves to find out who was singing. Through her conversation with her maid they learn that she is a maiden and that Gauri revealed herself to her in a dream and conferred a boon that the Emperor of Vidhyadharas, Jimutavahana will marry her. The two friends reveal themselves only to make Malayavati embarrassed. Malayavati leaves the temple with a hermit without knowing Jimutavahana's true identity. The hero and heroine fall in love with each other, though they are yet strangers to each other.