Germany,  New Year’s Eve, 1929: The Master of Ceremonies, or Emcee, welcomes the audience to the Kit Kat Club, a seedy Berlin nightspot (“Willkommen”). 

Meanwhile, in a railway car, an aspiring young American writer named Clifford Bradshaw heads towards Berlin in hopes of finding inspiration for a new novel. Cliff meets Ernst Ludwig, a German who appears to be in  the smuggling business. When Cliff inadvertently helps him, Ernst recommends a boarding house in Berlin. Fräulein Schneider, the proprietress of the boarding house, offers Cliff a room for one hundred marks. When he hesitates, she accepts half the usual price; years of oppression have left her weary but pragmatic (“So What?).

On his first night in Berlin, Cliff visits the Kit Kat Klub, where the Emcee introduces a young English singer named Sally Bowles (“Don’t
Tell Mama”). After Sally’s number, Max, the proprietor of the club, fires her; he says it’s “time for a new face.” When Cliff comes
backstage, Sally flirts and attempts to shock him. Sally leaves Cliff alone in her dressing room, and a young man named Bobby enters. As Cliff  and Bobby kiss, Sally sings her final number at the club (“Mein Herr”).

The next day, as Cliff finishes teaching an English lesson to Ernst, Sally suddenly appears in Cliff’s room with her baggage. Max has thrown her out, and she convinces Cliff (and Fräulein Schneider) to let her move in (“Perfectly Marvelous”). The Emcee and two companions sing a bawdy number about cohabitation (“Two Ladies”).

Herr Schultz, a Jewish fruit seller, woos Fräulein Schneider with the  gift of a costly pineapple (“It Couldn’t Please Me More”). On a small
gramophone, the Emcee plays a recording of a young boy singing a patriotic anthem to the Fatherland (“Tomorrow Belongs to Me”)

Months pass. Cliff is getting nowhere with his novel, but has grown accustomed to life with Sally. Sally reveals that she is pregnant. After
 the initial shock, Cliff is excited by the prospect of fatherhood, and Sally allows herself to hope (“Maybe This Time”). Ernst arrives and
offers Cliff a job smuggling a briefcase into Germany, and Cliff accepts. The Emcee comments on everyone’s need for cash (“Money”).

Meanwhile, Fräulein Schneider has caught one of her boarders, Fräulein Kost, soliciting sailors in her room. Fräulein Kost notes
Fräulein Schneider’s hypocrisy; she has seen Herr Schultz spend the night in Fräulein Schneider’s room. To save Fräulein Schneider’s
reputation, Herr Schultz declares they are engaged to be wed in three weeks (“Married”).

At the engagement party, Cliff hands Ernst the smuggled suitcase in exchange for an envelope full of cash. Ernst removes his coat, revealing  a swastika armband. Realizing that Herr Schultz is Jewish, Ernst goes to leave, but Fräulein Kost stops him, singing “Tomorrow Belongs To Me.”  As Cliff, Sally, Herr Schultz and Fräulein Schneider look on, the entire ensemble joins in singing the Nazi anthem.

The second act begins with the Kit Kat Girls and the Emcee, in drag, dancing in a kick-line that morphs into a goosestep. Fräulein Schneider expresses her concerns about marrying Herr Schultz, but he assuages her fears (“Married” Reprise). But their moment of reconciliation is interrupted by the crash of a brick thrown through the window of Herr Schultz’s shop. At the Kit Kat Klub, the Emcee performs a duet with a female gorilla, explaining that society will not accept their love (“If You Could See Her”).

Fräulein Schultz breaks off her engagement to Herr Schultz (“What Would You Do?”). Cliff decides to take Sally back to America where they can raise the baby together. Sally protests, declaring how wonderful their life in Berlin is, and Cliff sharply tells her to “wake up” and
take notice of the growing unrest around them. As the Emcee sings a rueful ballad (“I Don’t Care Much”), Cliff and Sally brutally waken each  other to the truth. At the Kit Kat Klub, Cliff and Ernst argue, and Ernst’s Nazi bodyguards beat Cliff and drag him out. On stage, the Emcee  introduces Sally, who enters to perform again, singing that “life is a cabaret, old chum,” cementing her decision to live in carefree ignorance  (“Cabaret”).

The next morning, as Cliff is packing to leave, Herr Schultz explains that he is moving to another boardinghouse, confident that the bad
times will soon pass. He understands the German people, he says, because  he is a German too. When Sally returns, she reveals that she’s had an abortion; Cliff slaps her. As Cliff leaves, Sally asks him to dedicate his novel to her. On the train to Paris, Cliff begins to write his novel, reflecting on his experiences: “There was a cabaret, and there was a master of ceremonies, and there was a city called Berlin, in a country called Germany… and it was the end of the world.” (“Willkommen” Reprise).

In the Kit Kat Klub, the Emcee again welcomes the audience (“Willkommen”), but he is now harsh and violent. The set disappears,
leaving only white space. The Emcee sings, “Auf Wiedersehen… à bientôt…”  and slowly removes his coat, revealing the clothes of a concentration camp prisoner. There is a drum roll and cymbal crash. Blackout.