Dr. Petrie is infuriated when the copyrights and ownership of his manuscripts are taken from him by Lord Ambrose D' Arcy, the owenr of the Opera house. During a struggle to regain his work, the professor starts a fire but it gets out of control, and in the attempt to put out the fire, he mistakenly tosses a tray of acid on the flames; some of the acid splashes back onto his face and scars him forever. He flees in Pain and ends up leaping into the Thames River; his body is never found.
Shortly thereafter, the London Opera House is menaced by a mysterious Phantom. The Phantom admires Christine Charles, a vocalist from the chorus, and he arranges a position for her to sing in the place of diva Marie through a series of incidents. People marvel at Christine's beautiful voice, and she is soon awarded the lead in the new opera, supposedly written by D'Arcy. When Chrisitne declines Lord Ambrose's advances, she is immediatley replaced with another singer, Yvonne.
The outraged Phantom send his dwarf assistant to abduct Christine. He takes her far below the opera house. There, under strict conditions, she is trained to sing the new opera by the Phantom. The masked man once again arranges that Chrisitne be given the lead in the new show.
During the course of the new opera, Christine's fiancee Harry Hunter, notices the dwarf assistant breaking loose the chandelier above the stage when he is spotted and chased by a stagehand. As the structure falls toward the stage, the Phantom tears off his mask, leaps from his hiding place and onto the stage to sacrifice his life for Christine's. He is crushed beneath the weight of the chandelier, and his face was hideously scarred.