Dance of the Vampires is a musical adaptation of the 1967 Roman Polanski film (known as The Fearless Vampire Killers in the United States). Polanski also directed the musical’s original German-language production (titled Tanz der Vampire). The music was composed by Jim Steinman, orchestrated by Steve Margoshes, and Michael Kunze wrote the original German book and lyrics.

Note: This synopsis applies to European and Japanese productions only. The Broadway version was heavily rewritten. In addition, portions of this synopsis may reflect later changes to the European show, which will become clear when reading the song list below.

Sometime in the late 19th century, Professor Abronsius and Alfred, his bumbling young assistant, arrive in a small Jewish shtetl somewhere in the Carpathians, where they hope to prove the professor's theory that vampires exist. Nearly freezing to death in the nearby woods (He, Ho, He), the two are taken in by Chagal, an innkeeper who spends most of his free time lusting after Magda, his beautiful chambermaid, much to the disdain of his long-suffering wife, Rebecca (Knoblauch – "Garlic"). The professor, upon noticing the countless strings of garlic hung about the place and around people's necks, is overjoyed, confident of the nearness of his goal, and immediately starts probing Chagal for information. The villagers, evidently frightened, pretend to be completely oblivious, silencing the local fool, who still manages to blurt something about the castle and the count that lives there. After exploring the rooms upstairs in which they are staying (Bitte, meine Herren – "Please, Gentlemen"), Alfred discovers and is smitten by Chagal's beautiful 17-year-old daughter, Sarah. Chagal is very protective of his child, going as far as boarding up her room so she wouldn't bathe around the two guests (Eine schöne Tochter ist ein Segen – "A Beautiful Daughter is a Blessing"). That night, Alfred and Sarah sing of their mutual attraction, while Chagal tries to coerce his way into Magda's bed and Abronsius is swiftly knocked on the head by Chagal's wife (Nie geseh'n – "Never Seen"). Unbeknownst to Alfred, late at night Sarah is serenaded by a mysterious stranger, who promises her eternal life and power (Gott ist tot – God is Dead").

The next morning, the Professor bears witness to a small business exchange between Chagal and Koukol, a hideous hunchback living somewhere in the woods (Alles ist hell – "Everything's Bright"). He inquires about the odd man (Wahrheit – "truth"), but Chagal refuses to discuss the matter. That same night, Sarah tricks Alfred into giving up his bath for her (Du bist wirklich sehr nett – "You're Really Very Nice") and as she joyfully soaps her sponge, Count von Krolock, an aristocratic vampire, breaks into the bathroom from the roof above and invites her to a midnight ball at his castle (Einladung zum Ball – "Invitation to the Ball"). He is about to bite the girl, but Alfred, who has been spying on Sarah's bathing ritual, screams for help. Chagal and Rebecca arrive, furious. Sarah's father spanks her and forbids her to ever go outside.

However, later that night, Koukol arrives at the inn and leaves a red bundle for Sarah on the doorstep. She sneaks outside and discovers it to be a pair of expensive red boots. Alfred comes outside as well and professes his love to her (Draußen ist Freiheit – "Outside is Freedom"). The two plan on running off together and Sarah asks Alfred to go back into the house to fetch her sponge. With Alfred gone, Sarah fantasizes about the fantastical, romantic vampire ball she could be missing and decides to accept the Count's invitation (Stärker als wir sind – "Stronger Than We Are"). She runs off into the woods. Alfred starts to panic, Chagal and Rebecca rush outside, but it's too late and Sarah's gone. Chagal wraps himself in garlic and runs into the woods after his daughter.

The next morning, Chagal's frozen body is found; Rebecca is devastated (Trauer um Chagal – "Mourning for Chagal"). Professor Abronsius discovers small puncture wounds all over the body, but the villagers, still in denial, incorrectly assume they came from wolf bites. The Professor hands Rebecca a wooden stake and explains she must puncture Chagal's heart in order to prevent him from becoming a vampire. Hysterical, Rebecca chases him and Alfred out of the room, covering her husband with a bed sheet and swearing that she would never let anyone violate his corpse.

In the middle of the night, Magda sneaks downstairs to look at Chagal's corpse, expressing mixed feelings about his death (Tot zu sein ist komisch - "To be Dead is Strange"). Suddenly, Chagal sits up, now a vampire. Magda tries to fend him off with a crucifix, but being a Jewish vampire, he manages to overpower her and feed on her blood, killing her in the process. Alfred and the Professor sneak into the room as well, planning to stake Chagal, but they find Magda's body there instead. A chase ensues and the two finally corner Chagal, who begs for mercy and promises to show them the route to the vampire's castle where his daughter supposedly is held if he's spared.

Chagal leads the two heroes to a giant castle in the woods (Durch die Wildnis zum Schloß – "Through the Wilderness to the Castle"), where they are greeted by the mysterious Count von Krolock and his flamboyant son Herbert, who is instantly attracted to Alfred (Vor dem Schloß – "In Front of the Castle"). Von Krolock invites the two men into his domain and the two reluctantly accept his invitation.