Wilhelm receives a letter from Werner describing the changes following his father’s death. He explains that the household has been reorganized: He plans to marry Wilhelm’s sister and sell the family house. He proposes investing in land, improving it, and reselling it and invites Wilhelm to oversee such projects in the future. Werner praises Wilhelm’s supposed knowledge in trade, agriculture, and industry, based on his (largely fabricated) journal, and expresses confidence in his abilities, assuring Wilhelm that the family “shall not need [him]” (273). Wilhelm feels criticized by the implied expectations and rejects the commercial ideas presented; he becomes more resolved to pursue a theatrical life.

Wilhelm replies to Werner, admitting that his journal was fabricated. He explains that his true aim has always been the cultivation of his own character and abilities. He contrasts the position of a burgher (such as he is) with that of a nobleman, arguing that only the latter can achieve complete personal development within society, while the former is limited to utility and specialization. He concludes that the theater offers him the only path to unite external expression and inner cultivation. Declaring his decision final, he resolves to become an actor and change his name. Soon after, he formally joins Serlo’s company, along with his companions, who show little gratitude. As he signs the contract, he experiences a vivid recollection of the noblewoman who saved him. Meanwhile, Mignon tries unsuccessfully to stop him.

Wilhelm insists that Hamlet must be performed completely, resisting Serlo’s push for heavy cuts. Wilhelm values the organic unity of the work, while Serlo prioritizes practical staging and audience reception. Wilhelm produces a revised structure. He distinguishes between the essential inner drama of characters and events, which must remain intact, and the external plot elements, which he sees as scattered and weakening unity. He proposes removing these secondary “errors” and replacing them with a single coherent political framework centered on Norway and military affairs. In this version, Horatio plays a larger role, and events are streamlined. Serlo approves the plan and urges Wilhelm to proceed with adapting the play.

Wilhelm completes his translation and adaptation of Hamlet while struggling with the sense that he’s altering a masterpiece. When he reads the finished version, Serlo and the company approve, praising the clearer structure and simplified background. Roles are assigned: Serlo takes Polonius, Aurelia plays Ophelia, and others are distributed, though difficulties arise in casting the King and the Ghost. Wilhelm resists further cuts, insisting that even minor characters must remain distinct to preserve meaning. Rehearsals are disordered and tense. Philina behaves playfully and provocatively, joking about her role and flirting with Serlo in a way that irritates Aurelia.

While “remolding” Hamlet, the troupe faces casting shortages. Even the prompter is considered for a role. Wilhelm praises the prompter’s sensitivity to language, though others note his emotional volatility and unsuitability for acting. Wilhelm insists on preserving key scenes, especially the player’s speech, which he sees as central to Hamlet’s moral awakening. Debate continues over casting, particularly for the Ghost, when Wilhelm receives a mysterious anonymous note: It promises that the Ghost will appear “at the proper hour” (286), unsettling the group. Meanwhile, Serlo enthusiastically shapes his role as Polonius, while Aurelia doubts her fitness for Ophelia. Wilhelm grows self-conscious about playing Hamlet, questioning whether his own nature and appearance match the character.

Wilhelm and Serlo debate the difference between novels and dramas. They conclude that novels emphasize sentiments and gradual development, while drama centers on action, character, and forward movement. Chance may shape events in a novel, but tragedy in drama arises from fate. Applying this to Hamlet, they note that the hero is shaped more by events than by decisive action, giving the play a novelistic quality within a tragic structure. The company then holds a book rehearsal, which Wilhelm considers essential for understanding the text’s spirit. Though it’s successful, Serlo cautions that most actors lack true creative imagination, stressing that clarity of meaning must come “to do justice to a part” (290).

At the first stage rehearsal, Wilhelm arrives early and is struck by the set’s resemblance to a past scene from his life, recalling his memories of Mariana. Putting aside this “strange coincidence,” he’s soon joined by the troupe and two enthusiastic amateur supporters of the theater, whose passion and practical insight prove valuable during rehearsals. With their guidance, Wilhelm and others train rigorously and improve.

As preparations advance, Wilhelm introduces detailed staging ideas, which Serlo largely indulges. Wilhelm proposes subtle positioning, such as having Hamlet remain inconspicuous during the court scene, and carefully designed visual elements. A key disagreement arises over the ending. Serlo suggests altering it, as “the public wishes [Hamlet] to live” (294), but Wilhelm firmly insists on preserving the tragic conclusion, arguing that artistic necessity must not be sacrificed to popular taste.

After the final rehearsal, the company faces last-minute problems, including unfinished props and whether the Ghost will appear as promised. A discussion arises about the value of theatrical labor, with Wilhelm defending the lasting impact of art. Philina responds playfully and then sings before leaving, provoking irritation in Aurelia, who expresses deep dislike of the “low and base” Philina (298). Later, Wilhelm finds Philina’s slippers mysteriously in his room. The incident unsettles him, and he spends the night restlessly.

On the night of the performance, Wilhelm prepares nervously. He lacks the earlier enthusiasm he once felt for acting. Suddenly, news arrives that the Ghost has appeared. On stage, Wilhelm initially feels unsettled and believes that he performs poorly, though the audience responds positively. When the Ghost enters, its imposing presence and mysterious voice deeply affect him, producing genuine fear that enhances his performance. His reactions appear strikingly authentic, heightening the audience’s emotional response. The play leaves a “profound impression” on the audience.

After the performance, the audience demands an immediate repeat. The troupe celebrates its triumph. Serlo recognizes the importance of this first impression and leads the company to a festive supper prepared by Wilhelm and Madame Melina. The group, still in costume, praises one another’s performances, including that of the mysterious Ghost, whose identity remains unknown. Mignon, Felix, and the harper join the celebration, entertaining the group with music and lively antics as Mignon’s behavior grows increasingly wild. The evening becomes disorderly, with drinking, games, and flirtation among the actors. As the gathering disperses, Wilhelm is given the Ghost’s veil as a “curious relic.” Mignon unexpectedly bites Wilhelm’s arm and flees. Later, alone in his room, Wilhelm, half-asleep, imagines the Ghost but is instead embraced and kissed by an unknown person.

Wilhelm wakes, disturbed by the memory of the mysterious nocturnal visitor and the strange warning found on the Ghost’s veil: “FLY, YOUTH! FLY!” (307). Mignon appears distant, heightening his unease. Rehearsals proceed sluggishly after the previous night’s excess. Wilhelm suspects that Philina may have been his secret visitor. That night, a fire breaks out. Wilhelm helps evacuate the house, saving Felix, while Mignon reveals that the harper attempted to harm Felix a moment of confusion. The fire is eventually contained, and performances resume. New actors take over key roles, and the play succeeds again, though tensions and uncertainties within the group persist.

After the fire, Wilhelm and his companions find new lodgings. Wilhelm settles in a quiet garden-house and keeps Felix with him, while Mignon refuses to leave the child. Though the children sleep, Wilhelm remains restless and troubled by recent events, including Philina’s uncertain intentions and the disappearance of the harper, who he suspects may have caused the fire.

While wandering in the moonlit garden, Wilhelm encounters the harper, who sings mournfully of exile and despair. The old man attempts to flee, claiming that he must escape, but Wilhelm restrains him and leads him into the garden-house. There, they remain together, engaged in a “strange conversation.”

With help from Laertes, Wilhelm arranges for the harper to be placed under the care of a clergyman experienced in treating “violent attacks of melancholy” (313). Meanwhile, Wilhelm grows dissatisfied with the audience’s shallow responses and with tensions inside the company.

Philina becomes distant and then reveals that she’s hiding a woman in her quarters. When Wilhelm successfully guesses that the name of the hidden person is Mariana, he is overwhelmed, believing it to be his former love. Philina then disappears with the supposed companion. Distraught, Wilhelm considers pursuit, but Laertes persuades him to wait, telling him that the “woman” Philina was hiding was likely Friedrich. Instead, a courier is sent to follow the “ambiguous pair” and report back.

Aurelia’s health worsens while Melina and Serlo quietly plot to reshape the theater for profit. The troupe performs Emilia Galotti, and Aurelia’s portrayal of Orsina is overwhelming, drawing intense applause but exhausting her completely. Serlo harshly condemns this, and when she exposes herself to the cold in defiance of her brother, she falls gravely ill. The doctor who treats Aurelia gives her a copy of a religious text to inspire her recovery, but her health doesn’t improve. Before dying, she entrusts Wilhelm with a letter for her former lover, Lothario. Then, influenced by the manuscript Confessions of a Fair Saint, she softens, forgives Lothario, and writes again in a gentler spirit.

Her death deeply affects Wilhelm, who decides to leave and deliver the letter (and a personal rebuke) himself. Melina assumes management as Wilhelm prepares for departure, gives Mariana’s pearl necklace to Mignon, and parts sorrowfully from the children. Mignon recites a poem that urges him to return soon.