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The Verdi version, which is the best known, is in four acts. It was adapted by Arrigo Boito from Shakespeare's play Othello.
Chorus of Venetian soldiers and sailors; and Cypriot townsfolk and children.
Setting: A coastal city on the island of Cyprus. Late 1400s.
Scene: In front of the castle. A tavern is nearby. Thunder and lightning.
There is no overture. The curtain rises upon a storm as the people of Cyprus await the of the Venetian fleet from its battle with the Turks. Otello arrives safely and announces that the Turkish fleet has been destroyed, and the Cypriots cheer. Jago tells Rogerido that he knows Roderigo loves Desdemona and wants to help, for he hates Otello. Taking Roderigo aside, Jago outlines a plan. The people of Cyprus celebrate the navy's safe return by lighting a bonfire. In the tavern, Jago offers Cassio wine, but Cassio says he does not drink any more. Jago pressures him, and when Jago offers a toast to Otello and Desdemona, Cassio gives in. Jago sings a drinking song and continues to pour Cassio wine. Montano enters and calls for Cassio to begin his watch, but he is surprised to find Cassio drunk and barely able to stand upright. To Montano's surprise, Jago explains that this is how Cassio spends every evening. Roderigo laughs at Cassio. Cassio asks who laughs; Roderigo says, "I laugh at drunkards!" and Cassio attacks him. Montano tells Cassio to refrain, but Cassio draws his sword and threatens to crack open Montano's head. Cassio and Montano begin to duel, and Jago sends Roderigo to attract attention. Cassio wounds Montano as Otello enters and orders them both to lower their swords. Otello asks "honest Jago" to explain how the duel began, but Jago says he does not know. Otello asks for Cassio's explanation, but he, embarrassed, cannot speak. When Otello discovers that Montano is wounded, he becomes enraged. Desdemona enters, and, upon seeing that his bride's rest has been disturbed, Otello declares that Cassio will no longer be his captain. Montano is helped away and the Cypriots leave Otello alone with Desdemona. Together Otello and Desdemona recall why they fell in love. Otello kisses Desdemona thrice and together they walk home to the castle.
Scene: The castle, by the garden.
Jago tells Cassio that if he does as Jago says, Desdemona will return his love and, because she controls Otello, she will have him reinstated as captain. Cassio goes to wait for Desdemona while Jago hides in the garden. Jago, in a monologue known as his Credo, tells the audience that he is evil. Desdemona and Emilia enter, and Cassio begins to plead with Desdemona. As they enter the garden, Jago slips back into the castle. Pretending not to notice Otello, who is walking by, Jago says that he is deeply wounded. Otello asks what's wrong. Jago, by giving half-answers and asking vague questions, makes Otello demand to know what it is that Jago is thinking of. Jago intimates that Cassio and Desdemona are in love. Otello feels himself becoming jealous, but he wants proof of Desdemona's betrayal first.
A crowd of children, sailors, and Cypriots encircles Desdemona, praising her beauty and purity. They leave her gifts and wish her happiness before leaving. Desdemona carries Cassio's request for reinstatement to Otello. She says that it makes her very sad, and she prays that he will pardon Cassio. Otello sourly tells her to ask him another time, but she insists. Otello says that he has a headache. Desdemona wraps his head in a handkerchief Otello once gave her, linen and embroidered with strawberries. Otello throws it to the ground and says he doesn't need it. Emilia picks up the handkerchief. Desdemona asks for Otello's forgiveness. Aside, Jago demands that Emilia give him the handkerchief. When she refuses, Jago takes it from her. Otello asks to be alone. Desdemona and Emilia leave. Jago pretends to leave, but comes back. Otello, filled with jealousy, demands that Jago prove Desdemona's infidelity, or else Otello will kill him. Jago says that once, when he and Cassio were sleeping in the same room, he heard Cassio talking to Desdemona in a dream. In the dream, says Jago, Cassio told Desdemona that they must be careful to conceal their love. Jago continues that it was only a dream and does not prove anything—but then asks if Otello remembers the handkerchief that Desdemona was embroidering? Otello says yes, it was the first gift he gave to her. Jago says that he saw it just yesterday with Cassio. Otello calls for blood, and kneeling down, prays for vengeance. Jago kneels with him, and together they swear vengeance on Desdemona.