Thirty-two years later, challenger Freddie Trumper arrives late for a press conference about his match in Bangkok, Thailand with reigning chess champion Anatoly Sergievsky. Freddie declares "What a Scene" the conference is, attacking the press; he gives snide remarks to all their questions but the crowning grace comes when a reporter accuses Freddie of sleeping with his second - one Florence Vassy. Freddie throws a glass of water in the reporter's face and storms off, leaving Florence to pick up the pieces ("Smile You've Got Your First Exclusive Story").

Back in his suite, Anatoly discusses Trumper's antics with Molokov; he is casual about it, but gets annoyed when Molokov makes him play a game of chess against a major bureaucrat. He questions his path in life ("Where I Want to Be"). Meanwhile, Freddie and Florence argue over Freddie's move into marketing; Florence, wanting Freddie to respect Anatoly as a player, shows him a very clever move of Sergievsky's. Freddie doesn't buy it, and things erupt into an argument ("How Many Women"). [Note: In Bell's version, the two suite scenes are intertwined, switching back and forth between them instead of performing each of them straight through.]

At the arena, the Arbiter lays down the law for a clean match ("The Arbiter's Song"); there is much muttering over the "US vs. USSR" quality of the match. [Part of "The Arbiter's Song" is after "US vs. USSR.] "Chess #1" shows us the gameplay. Freddie stops the clock, accusing Anatoly and the Russians of cheating by using coded yogurt. [Note: This may seem ludicrous, but like most of Chess's plot, it has a solid basis in actual chess history.] Not getting his way, Freddie storms out of the arena, much to the chagrin of the Arbiter, Florence, Molokov, and Anatoly, who discuss how discuss how "A Model of Decorum and Tranquility" becomes a battleground for rival ideologies to slug it out with glee. Florence and Molokov agree to meet at a restaurant later.

Back at their hotel room, Florence confronts Walter, then Freddie, about the walkout. Walter leaves, and Florence argues with Freddie. He tries to use her Hungarian roots to muster anti-Soviet sympathies ("1956 - Budapest is Rising"). After he leaves, Florence ponders whether she could be happier in "Someone Else's Story." Freddie, angered, spends "One Night in Bangkok;" meanwhile, Florence goes to the meeting, and winds up alone with Anatoly. They fall for each other amidst the tenuous "Terrace Duet," but Freddie walks in at an inopportune moment. He berates Florence ("Who'd Ever Think It?"), but says that he has been offered enough money that he can go on with the match.

Freddie enters a losing slump ("Chess #2"), and accuses Florence of having wanted this all along ("Florence Quits"). We see "A Taste of Pity" from Freddie before she leaves, and Florence packs - wondering if perhaps she is on "Nobody's Side."

Back at the arena, we find that Walter has arranged for Anatoly to defect to the United States - Florence's adoptive homeland. However, Walter lets "The Reporters" in to see the new celbrity; Anatoly counters their political and personal barbs with a stirring internationalist "Anthem."

Two months later, Florence and Anatoly arrive in Budapest, Hungary, for the match's continuation. She visits a cathedral ("Hungarian Folk Song") where she encounters Molokov, who seems to be trying to instill seeds of doubt into her mind. She reacts by considering her feelings for Anatoly ("Heaven Help My Heart")

Meanwhile, Freddie finds out that Florence and Anatoly are in the same hotel as him; Walter tries to psych him up for the political maneuvers he needs to pull, saying it's "No Contest." Meanwhile, the happy couple finds that Anatoly's wife Svetlana is in Bangkok, which leads to two "You and I" duets: one with Florence and Anatoly, and one with Anatoly and Svetlana. Anatoly finds out about his estranged wife's misfortune, and his brother's, from an enraged Molokov. He goes back to the board, and his play suffers.

Freddie brags about his achievements to the press in so audacious a way that it is called "Freddie Goes Metal." Meanwhile, Walter and Molokov confer over the secret of Florence's father win a comic duet, "Let's Work Together." In the hotel lobby, Florence becomes upset and leaves; she is seen parallel with Svetlana. Together, they both claim "I Know Him So Well."

Anatoly insists that he needs a week to calm down. Florence goes to Freddie to ask for the week, but he is uncooperative. Instead, he desperately tries to rekindle what he had with Florence, kissing her. She rebukes him and leaves. He sings his depression. ("Pity the Child").

In a stirring "Endgame," there is great mystery as to whether or not Anatoly will even show up. But when he does, we see his thoughts: he decides that it is best if he loses the match and goes back to the Soviet Union. He and Florence say weepy goodbyes ("You and I - Reprise"). She is finally told by Walter that Anatoly has been traded for a CIA agent. After Walter leaves, a Russian wheels in an old man - Gregor Vassy, her father. The "Lullaby" theme plays before all sing a truncated "Anthem" reprise.

[Note: This is what is known as a "Compromise Ending." The show still has the unhappy separation of Florence and Anatoly, but Florence gets her father back. People tend to prefer the Compromise Ending to the original Broadway ending, which is outright depressing. But look in the Broadway commentary for more thoughts on that.]