The young baron Sandor Barinkay who is the heir of great possessions returns home with his servant Istvan. The rumor is that Sandor was killed in the duel in Vienna. Young baron returns after long voyage to his native land where gypsies’ camp which is governed by Czipra and her ward beautiful Saffi is settled.
Everyone considers Sandor to be dead. So pig farmer Zsupan takes the chance and misappropriates baron’s mansion. To improve his status Zsupan wants to force his only daughter Arsena to marry corruptible Royal Commissioner Carnero. However Arsena protests because she is in love with her father’s employee Ottokar.
The pig farmer is also annoyed with gipsy’s arrival. While Zsupan is arguing with gypsies, baron Sandor Barinkay, who is the true owner of those lands, arrives. Zsupan claims Sandor to be an impostor.
Barinkay is irritated. He offers Ottokar and Arsena his help and protection. Seeing beautiful gypsy girl Saffi Sandor falls in love with her. To protect gypsies from Zsupan Sandor agrees to become their governor – the Gipsy baron.
Sandor plans to play a trick on egoistic and arrogant Zsupan. All gypsies, beloved young couple, Zsupan’s servants and his housekeeper Mirabella who is in love with baron’s servant Istvan support him. Zsupan has a date with pretty Saffi but old Czipra comes instead. Everybody takes part in this plot. Meanwhile foolish Carnero is caught stealing the best Zsupan’s pig he thought to be the Arsena’s dowry. Enchanted with Saffi’s beauty and wit Barinkay declares his love. According to gypsies’ custom baron’s new friends are celebrating their engagement.
Zsupan and Carnero charge both Barinkai and Istvan. One is charged with imposture and law violation, the other with stealing of the pigs. Zsupan and Cornero sentence Barenkai and Istvan to imprisonment and force gypsies to leave those lands forever.
Celebrating his victory Zsupan meets count Homonay who is a new governor of the province. Zsupan boasts about his victory over “criminals”. Suddenly it turned out that Barinkay is count’s nephew and Saffi is a daughter of Homonay who was lost long ago when a child. Happy father gives his blessing for Saffi and Barinkay marriage. Getting her father’s permission Arsena gets married with Ottocar. Mirabella is happy with Istvan. Now gypsies have protection of count Homonay and the real Gypsy baron Sandor Barinkay.