Ver en Cuevana. Cheerful and mischievous lad Gritsko offers young Parasya his hand and his heart on the first day of the fair in Sorochyntsi. The girl's father, Cherevik, presents no objection – her stepmother, however, is furious, and refuses to recognise their relationship; Cherevik drunkenly relents. Gritsko alone bemoans his sadness, whereupon a gypsy presents him a deal – Gritsko will sell his oxen to the gypsy if the latter can successfully make Parasya's parents accept their union.