Caliban is chopping wood when he hears thunder nearing. He sees what he thinks is a spirit sent by Prospero in the shape of a man. Caliban hopes playing dead will let him go unnoticed.
Trinculo, a jester who serves the King, appears. He believes Caliban to be an interesting creature, and wishes to himself that he could put the monster on display. Despite the gross nature of Caliban's garments, Trinculo crawls under Caliban's cloth in fear of the approaching thunder and lightning
Stephano, a butler who serves the King, washes ashore in a barrel full of wine and has ingested much of it. A drunken Stephano believes he sees a two headed, four legged creature indigenous to the island.
Flashback to the initial destruction of Stephano's ship. Stephano is able to grab onto a wine barrel and safely escape the sinking vessel.
Trinculo, relieved to see his friend, jumps up out of the cloth. Caliban is offered what little wine Stephano has left in his attempt to appease the horrid beast.
Already drunk from his first sip of wine, Caliban decides that Stephano shall be his new master as opposed to Prospero. Stephano is pleased and accepts Caliban's offer. Caliban is looking out for his personal benefit throughout the play, as this is similar to when acted as Prospero's servant simply to get to his daughter.