The next morning, Tyler awakes to the Phantom playing the organ with furious and repetitious concentration.

He looks around to see himself still in his lair, and quickly begins to remember how he came there.

(Start song)

I remember there was mist
Swirling mist upon a vast, glassy lake
There were candles all around
And on the lake, there was a boat

And in the boat, there was a man

Tyler rises and approaches the oblivious Phantom, who does not see him. As he reaches for his mask, he turns away, but he keeps trying.

Who was that shape in the shadows?
Whose is the face in the mask?

Finally, Tyler succeeds in tearing the mask from his face.

Horrified and enraged, the Phantom screams at the boy and chases him around the lair, while holding his hand over his face.

(The Phantom)
Damn you!
You little prying Pandora!
You little demon!
Is this what you wanted to see?

Curse you!
You little lying Delilah!
You little viper!
Now you cannot ever be free!

Damn you!
Curse you!

Stranger than you dreamt it
Can you even dare to look
Or bare to think of me

This loathsome gargoyle, who burns in hell, but secretly yearns for Heaven

Secretly
Secretly

But, Tyler...

Fear can turn to love
You'll learn to see, to find the man behind the monster

This repulsive carcass, who seems a beast, but secretly dreams of beauty

Secretly
Secretly

Oh, Tyler

The Phantom buries his face in the ground and sobs. Tyler, seeing the pain and agony in the man, takes pity on him.

He hands him back the mask.

Once he puts it back on his face, he stands to his feet and takes him by the hand.

Come, we must return
Those two fools who run my theatre will be missing you

The Phantom takes Tyler out of his lair and back to the opera house.