In a Prologue, Mei-Li begins a flower drum song she has learned from her father (“A Hundred Million Miracles”), which becomes the theme as she begins her own journey to the West. Protesting against the rigid doctrines of marching Chinese Communists, all of whom regard Mao as their “Fater,” Mei-Li’s father stands bravely against the Maoists, who drag him away under arrest, but not before he urges his daughter to flee the country. She will later learn that he died in prison. Storytelling techniques of Chinese opera depict Mei-Li’s perilous trek across the ocean, as she huddles in a ship’s hold with other refugees, her precious flower drum in hand. Eventually Mei-Li and the others arrive, breathing the fresh new air of freedom in California, U.S.A.

Mei-Li arrives at the Golden Pearl Theater in San Francisco, run by her father’s oldest friend, Wang Chi-Yang, who had come to America years earlier. His wife died on the crossing. Wang clings to his mission to perform traditional Chinese opera here, despite ever-shrinking audiences. With few performers available, his son Ta is forced to play the traditional women’s roles (“At the Golden Pearl”), but the young man’s heart is in Nightclub Night – the one night his father lets him use the theater for high-stepping, low-brow revues starring the object of his affection, Linda Low. Ta sees Mei-Li’s arrival as an opportunity to hand over the women’s roles to an actual woman. She, in turn, is fascinated by Ta’s Western ways, although confused about how Chinese he is and how American he has become. She is also smitten by Ta himself (“I Am Going to Like it Here”).

Ta’s chorus is rehearsing for Nightclub Night when Linda arrives, late as usual. Ta has come up with a new idea, inspired by Mei-Li. Why not combine the Chinese culture with Western striptease? Linda is only mildly amused and has scant knowledge of traditional Chinese ways; she rebuffs Ta’s advances because she only dates Caucasian men. When Mei-Li visits her backstage to learn about American dating customs, Linda realizes this new girl has fallen for Ta, and offers to help Mei-Li land Ta, starting off by explaining how much better life is for women in America than in China (“I Enjoy Being a Girl”). The song becomes the hit of Nightclub Night.

Ta’s father Wang is appalled, but his wise old sidekick, Chin, is amused. Mei-Li tells Ta that he shouldn’t ignore traditional ways; her father had told her how wonderful Ta’s parents had been when they performed “The Flower Boat Maiden.” She explains that the story isn’t as he thinks – “corny” – but is instead a beautiful tale in which the maiden makes the humble scholar realize he is a god (“You Are Beautiful”). When the song ends, Mei Li and Ta unexpectedly find themselves staring into each other’s eyes. Ta plants a quick kiss on Mei-Li’s cheek, then apologizes. “You Americans – you apologize too much,” she says.

Madame Rita Liang, “theatrical agent for Oriental talent,” has seen Nightclub Night and has just signed Linda Low, for whom she has big plans. Those plans include transforming the Golden Pearl Theater – “That name... it’s not even logical!” – into the hottest nightspot in Chinatown. She quickly rallies everyone, except Wang, to her vision of a place palatable to Western tourists curious to see some exotic Chinese culture (“Grant Avenue”). Reluctantly, Wang lets Nightclub Night take over – for a while, at least.

One of Mei-Li’s fellow travelers, Chao, has a job at a fortune cookie factory. While making his daily delivery to the club, Chao is surprised to see Mei-Li. He asks her out to dinner. It’s opening night, so she can’t go. Ta observes the conversation and senses Chao’s interest in Mei-Li. When she shares her inability to grasp American dating habits, Ta playfully assures her that she’s the kind of girl whose appeal is much simpler; someday a special guy will want to spend an idyllic “Sunday” with her. Mei-Li goes backstage for advice from Linda about how to deal with her increasing interest in Ta, who has asked for a “long talk” after the performance. Linda loans Mei-Li one of her dresses, and suddenly Mei-Li is transformed from a plain girl into a beautiful young woman (“I Enjoy Being a Girl” Reprise).

It is the grand opening night of the new Club Chop Suey. Linda’s new number, inspired by Mei-Li’s idea of using fans, kicks things off in a smoky, sexy fashion (“Fan Tan Fannie”). Due to audience demand, the club presents three shows, and the Mayor is expected at the third. Something is bothering Wang; despite his stubborn views, he’s beginning to like what’s going on in his theater. But there’s a sailor number that’s not going over so well. Harvard, a young man who has agreed to make all the costumes in exchange for a featured spot, just isn’t cutting it. So, with his performer’s instincts taking over, Wang assumes the role himself and leads the company in “Gliding Through My Memoree.”

The show is a big success. Wang is so happy with his transformation that he decides he needs a new name: Sammy Fong. Linda’s plot to fix Ta up with Mei-Li, however, backfires. Ta feels he’s been set up and refers to Mei-Li as a consolation prize. He regrets what he’s said, but it’s too late. Mei-Li has heard him and she runs off, only to return in her Chinese clothes, alone. She finds herself a refugee once again, among a group of fellow disillusioned immigrants (“Finale – Act One”).