In the opening scene, they are once again fleeing the police and this provokes a reenactment of one of their almost daily rituals: exasperation and angry threats from George, followed by injured feelings and sulking from Lennie, and eventually yet another reconciliation.
Slim, the stalwart ranch foreman, announces a new litter of puppies and, as the men clamor for them, Curley's wife re-appears.
When she is gone, Carlson, the assistant foreman, abetted by the other ranch hands, begins harassing Candy to give up his old dog, whose smell is unbearable in the bunkhouse.
When Carlson shoots the dog offstage after a long, tense wait inside, the Ballad Singer, a young ranch hand returning late to the bunkhouse, bursts in, alarmed at having heard the shot.
After he is told what has happened, he briefly comforts Candy and then slowly climbs into his bunk as the ranch hands join him in singing his lonely ballad.
Later, while reading the want ad to Lennie, who now has his own puppy, George is overheard by Candy, who asks to join them in their venture and offers his savings as inducement.
As the men sing of their excitement at having a home and life of their own, and dance exuberantly, Curley's wife enters and the merriment abruptly stops.
Scene 1 Lennie is disconsolate at having inadvertently killed his puppy, and is hiding it in the loft of the barn when Curley's wife enters, carrying a suitcase and obviously preparing to leave the ranch.
She and Lennie begin to confide their dreams and fantasies to each other, neither aware the other is speaking: hers, a glamorous career as a movie star; his, to have pets on his farm.
As George, broken, exits with Slim, Candy furiously curses the dead body of Curley's wife as the scene ends.
The ranch hands and Curley, hearing the shot, converge on the two lonely figures and, as Slim stays behind with George, the others, indifferent to the tragedy, exit.