"I really do not believe that you have to have seen Phantom of the Opera to understand Love Never Dies. I really don’t. But I hope if you see them together, if you wanted to see them back-to-back, that what you would get from them — from both of them — is the extension of where the story goes.“
Andrew Lloyd Webber
Prologue (revised version)
Ten years after the events at the Paris Opera, The Phantom is now the mastermind of Phantasma, a Coney Island amusement park. Despite the success of his endeavours, he is tortured by the absence of Christine Daae in his life and he longs to hear her sing again ("Til I Hear You Sing"). He sends Christine an invitation to make her American debut on the Phantasma stage. Unaware that The Phantom is behind this, she accepts the invitation and journeys to New York with her husband Raoul (Vicomte de Chagny) and son, Gustave.
Act I
At Phantasma, Madame Giry and The Phantom's performers introduce the wonders of Coney Island ("The Coney Island Waltz"). Meg Giry, Christine Daaé's friend from the Paris Opera, has become "the ooh la la" girl in The Phantom's vaudeville show, which Madame Giry produces. Meg and the Phantasma cast win the crowd over with their performance of "Only for You". Madame Giry assures Meg that she performed wonderfully, although The Phantom was not present at the show. Madame Giry is concerned that her daughter has lost the attention of the Phantom and she reminisces about how she and Meg smuggled him from Paris, France to New York City.
Christine, Raoul and their ten-year-old son Gustave arrive in New York and are met by crowds of paparazzi. They are greeted by the freaks, who arrive by a horseless carriage, to take them to Coney Island (“Are You Ready to Begin?”). Raoul is angry at the reception and upsets Gustave by not playing with him. ("What a Dreadful Town!...") As Raoul leaves to go drinking, Christine tells Gustave to “Look With Your Heart” to try to help him understand. Gustave goes to bed, and the Phantom arrives to see Christine. (“Beneath a Moonless Sky”). They recall that “Once Upon Another Time” they thought their love had a chance of succeeding. Gustave wakes up screaming from a nightmare and meets the Phantom for the first time ("Mother Please, I'm Scared!"). The Phantom promises to show Gustave more of Phantasma. He tells Christine that she must sing for him again or she will return home without the boy.
In the rehearsal studio for Phantasma, Meg is surprised and jealous to learn that Christine will be singing. Raoul encounters Giry and discovers that the Phantom is the one for whom Christine is to be singing ("Dear Old Friend"). The freaks bring Gustave to the Aerie where he is greeted by the Phantom. Gustave plays a melody on the piano that leads the Phantom to suspect he is Gustave's father ("Beautiful"). The Phantom questions Gustave and finds they are kindred spirits. He unmasks himself, believing Gustave will accept him ("The Beauty Underneath"), but Gustave is horrified and screams. Christine comforts Gustave and, when pressed by the Phantom, confesses that Gustave is his son ("The Phantom Confronts Christine"). The Phantom makes Christine promise to never tell Gustave that Raoul is not his real father. The Phantom declares that everything he owns will go to him. Having overheard everything, a furious Madame Giry fears all her work over the years has been for nothing.
Act II
In a gloomy bar, Raoul contemplates his relationship with Christine ("Why Does She Love Me?"). He is joined by Meg who tells him he is in "Suicide Hall", the place "where people end up when they don't know where else to go." Meg swims each day to wash away the stress of working. She tells Raoul that he must leave with Christine and Gustave. Raoul says he is not afraid of the Phantom, who has been behind the bar. As soon as Meg leaves, the Phantom reveals himself and they make a bet: if Christine does not sing, Raoul may leave with Christine and Gustave. Otherwise, Raoul must return home to Paris alone. The Phantom leads Raoul to question Gustave's paternity ("Devil Take the Hindmost").
Fleck, Squelch and Gangle appear to advertise Christine's appearance at Phantasma ("Invitation to the Concert"). That night, Meg performs a strip-tease about her choice of swimming costumes ("Bathing Beauty"). The audience goes crazy for Meg, but Madame Giry tells Meg that the Phantom did not watch the performance and it was for nothing ("Mother, Did You Watch?").
"Before the Performance", Gustave explores backstage, while Raoul asks Christine to leave with him if she loves him. As Raoul leaves, the Phantom enters and tells Christine that Raoul's love is not enough and that she must sing for him. In her dressing room, Christine recalls the Opera where she had to decide between Raoul and the Phantom. Madame Giry, Raoul and the Phantom wonder whether Christine will sing ("Devil Take The Hindmost" (reprise)). Christine performs an aria for the crowd, as Raoul and the Phantom watch ("Love Never Dies"). Raoul leaves as Christine finishes to thunderous applause. Christine is greeted by the Phantom and a letter from Raoul informing her of his departure ("Ah Christine"). Gustave is missing, and she becomes worried ("Gustave, Gustave"). She had previously told him to wait for Raoul backstage and did not want to believe that he had taken the boy. Furious, the Phantom vows to kill the "drunken fool," but Squeltch informs him that he saw the Vicount leave alone. Then, the Phantom suspects Madame Giry because of her attidute towards him before Christine's number and threatens her as she is brought to him by Squelch and Dr. Gangle. Madame Giry confesses that she knew about Gustave's true parentage, but denies every going near him. Fleck reports that she was passing Meg's dressing room when she noticed the mirror had been smashed and Meg is nowhere to be found. Christine fears for her child's life, but Madame Giry assures her that Meg never hurt Gustave. The Phantom believes he knows where Meg has gone.
At Suicide Hall, Meg prepares to drown Gustave, when the others confront her. She holds up a gun so the Phantom will listen as she reveals that the resources Madame Giry has afforded him came from Meg's working as a prostitute to influential men. The Phantom tries to get the gun, but Meg accidentally shoots Christine. As Madame Giry and Meg are sent to find help, Christine reveals to Gustave that the Phantom is his real father and a shocked Gustave runs off. She tells the Phantom that her love for him will never die. They have one final kiss and she dies in his arms. Gustave returns with Raoul who looks on silently and sadly, then Gustave goes and joins the Phantom and lays his head on the lap of his deceased mother. Gustave then looks up at the Phantom and takes the Phantom's mask off but does not react as he did before ("Love Never Dies" (reprise)). Gustave and the Phantom look at each other as the curtain falls.