Cornelius and Barnaby, too poor to afford a taxi, persuade the ladies that walking to the restaurant is far more elegant than hiring a hack (“Elegance”).

At the Harmonia Gardens, Rudolph, the majordomo, exhorts his waiters to provide even better and faster service tonight—Dolly Levi is coming back! In a welter of dazzling precision, criss-crossing at breakneck speed, the staff prepares for Dolly’s arrival (“The Waiters’ Gallop”). Cornelius and the party arrive and occupy a luxurious private dining booth, complete with the drawn curtain. Horace and his date, Ernestina Money, reputed by the conniving Dolly to be an heiress, sit in another. Ernestina, who proves to be less refined than Horace had hoped, soon gets drunk and passes out.

Finally, Dolly makes her grand entrance and the entire restaurant celebrates (“Hello, Dolly!”). Dolly settles down to eat with Horace, talking incessantly and repeatedly rejecting a proposal of marriage… which he never makes.

A dance contest begins (“The Polka Contest”), and just as Ambrose and Ermengarde are declared the winners, Horace discovers he has the wrong wallet; he and Barnaby, through a mix-up, have exchanged them. In the melee that follows, Rudolph calls the police, and the whole party is arrested. In the courthouse, Cornelius admits he’s no playboy millionaire, but it doesn’t matter; he loves Irene and he’ll always have the memory of one miraculous day (“It Only Takes A Moment”). The judge, moved by Cornelius’s sentiment and persuaded by Dolly Levi, Counselor-At-Law, dismisses everyone except Horace Vandergelder. Horace expects Dolly to help him, but instead, she chooses to walk away (“So Long, Dearie”).

The next morning, back in Yonkers, a chastened Horace Vandergelder reflects on the recent events in his life and realises he’s hopelessly in love with Dolly. Dolly enters the store and convinces Horace to take Cornelius as his business partner and allow Ambrose and Ermengarde to marry. Still unsure about marrying Horace, Dolly asks her late husband Ephraim for a sign. Horace, who has hired a fledgeling businessman to renovate his home, spontaneously repeats an old saying of Ephraim’s: “Money is like manure. It’s not worth a thing unless it’s spread about, encouraging young things to grow.” Satisfied, Dolly agrees to marry Horace and vows she’ll “never go away again” (Finale: “Hello, Dolly”).