''Waltzes from Vienna'' begins with the sound of the fire brigade horn and the clip-clop of horses’ hooves, as the firemen race towards a fire at Ebezeder's Café. Upstairs from the café, Resi and Schani are oblivious to the danger, lost in a love duet that concludes with Schani telling Resi that he has dedicated his newest song to her. At the same time, Schani's music attracts the attention of the Countess Helga von Stahl, who is shopping in the dressmaker's store next door. Schani and Resi's romantic interlude is interrupted by Leopold, a baker in Resi's father's café who is in love with Resi, as he awkwardly climbs up the ladder to save her. Schani and Leopold argue over who will save Resi from the fire, but Leopold eventually wins and hauls Resi over his shoulder and down the ladder, causing her to lose her skirt on the way. Resi races to the dressmaker's shop to get away from the laughter of the onlookers. Schani retrieves Resi's skirt and then stumbles into the dressmaker's in search of Resi, where he meets the Countess. When the Countess learns that Schani is an aspiring musician, she proposes that he set some of her verses to music. As the Countess offers Schani her card, Resi enters the room and becomes immediately suspicious of the Countess's intentions.