6 months later. It is New Year's Eve and everyone is at the Masquerade. Raoul and Christine discuss their secret engagement. Raoul does not understand why their engagement has to be a secret. Christine explains that it is because of the Phantom. He would be angry if he found out. But Erik knows all at his opera house! He confronts them about their engagement, dressed as "Red Death" and exposes it to all. Later, Erik gives more orders. This time, it is for the opera house to perform his production, Don Juan Triumphant. This is his life's work and expects all to participate. After some arguement about the Phantom's decision to place Christine as the

lead, they beginn to prepare for their forced showing. Later, Christine goes to the graveyard and meets with the Phantom- her Angel of Music. He begins to sing and bring her back into his underground world, but there is an intruder! Raoul has found them and is trying to bring Christine out of her dazed state. While he is doing this, the Phantom taunts him until Raoul succeeds and the Phantom realizes that he lost their war of words (and fireballs!). Raoul and others at the Opera House plan a trap for Erik. If Christine sings, he is sure to come! Lock the doors, trap him in his own game! Once again, Erik knows all! Always a step ahead, the night does not go as Raoul has planned. While Christine (as Aminta in Don Juan Triumphant) sings, the Phantom uses his Punjab Lasso and makes Signor Piangi (Don Juan), no more! He takes his place and sings with Christine. "Past the point of no return" they sing. The final step in proving that he is indeed the Phantom, he sings "All I ask of you" and covers her with his cloak and both vanish! The scene is transformed to a mob forming on the stage, while the Phantom is taking Christine to his underground labyrinth! "Down once more to the dungeon of my black despair! Down we plunge to the Prison of my mind! Down that path into darkness deep as hell!" he exclaims. He says, "Why, you ask, was I bound and chained in this cold and dismal place? Not for any mortal sin, but the wickedness of my abhorrent face!" In the distance, they hear the mob forming to "Track down this murderer!" The mob soon finds the lake, but Christine and the Phantom are already on the other side of the lake! Raoul swims across and demands for Erik to free her! "I love her! Does that mean nothing? I love her? Show some compassion...," Raoul says. The Phantom exclaims, "The world showed no compassion to me!" He then rises the fence when Raoul demands to see her. Bidding him welcome, the Phantom uses his Punjab lasso around Raoul's neck! With the upper hand, the Phantom asks Christine to chose: "Start a new life with me- Buy his freedom with your love! Refuse me, and you send your lover to his death! This is the choice- This is the point of no return!" Raoul realzes that either way, the Phantom has won! If she says that she loves Erik, Raoul's life is over! If she does not, he is dead! Christine, a few moments later, says this: "Pitiful creature of darkness...What kind of life have you known...? God give me courage to show you you are not alone..." She then kisses the Phantom as Raoul watches in horror and wonder. The Phantom then releases Raoul from the Punjab lasso as they hear the mob coming once again. The Phantom sees that there is no way out for him, so he orders Christine and Raoul to take the boat and leave him there! Christine comes back to give Erik, her Angel of Music, the ring he gave her, as perhaps, something to remember her by. She then hurries off to the boat with Raoul as the mob reaches the Phantom. He walks to his throne, sits, and wraps himself in his cloak. When the mob reaches the throne, only his mask is left.