This section of the novel begins on the opening night of the Night Circus in 1886. The opening ceremonies are described, with a particular focus on the lighting of the bonfire: “at midnight, the bonfire is ceremoniously lit, having spent the earlier part of the evening standing empty” (119). During this event, twelve archers fire arrows at the sound of the twelve chimes of midnight. Each of the arrows causes a level of the bonfire to explode into a different color, so that the bonfire changes color twelve times. At the same time, the wife of the circus’s wild-life tamer gives birth to twins: Winston Alden Murray (who is born six minutes before midnight) and Penelope Aislin Murray (who is born seven minutes after midnight) both of whom have bright red hair. Chandresh, the owner of the circus, is upset that the twins are not identical, because he knows he cannot easily place fraternal twins in a show together. Shortly after their birth, the children are given the nicknames Poppet (for Penelope) and Widget (for Winston).

At the lighting of the bonfire, Marco, who has been living in London and working for Chandresh, appears and throws one of his notebooks into the flames with no explanation.