An amusement park on the outskirts of Budapest on a late afternoon in Spring. Barkers stand before the booths of the sideshows haranguing the passing crowd. The strident music of a calliope is heard; laughter, shouts, the scuffle of feet, the signal bells of merry-go-round.
The merry-go-round is at Center. Liliom stands at the entrance, a cigarette in his mouth, coaxing the people in. The girls regard him with idolizing glances and screech with pleasure as he playfully pushes them through entrance. Now and then some girl's escort resents the familiarity, whereupon Liliom's demeanor becomes ugly and menacing, and the cowed escort slinks through the entrance behind his girl or contents himself with a muttered resentful comment.
One girl hands Liliom a red carnation; he rewards her with a bow and a smile. When the soldier who accompanies her protests, Liliom cows him with a fierce glance and a threatening gesture. Marie and Julie come out of the crowd and Liliom favors them with particular notice as they pass into the merry-go-round.