In the late 19th century, the Paris Opera House is rumored to be haunted by an elusive entity known as the Phantom who exercises a reign of terror over the venue. The story follows Christine Daaé, a young and talented chorus girl who becomes the protégée of the mysterious Phantom. Believing her late father sent the Phantom to take care of her, Christine is entranced by his guidance despite his odd methods and strange demeanor. As the Phantom tutors Christine in secret, her talents are quickly recognized, and she is thrust into the limelight, replacing the Opera's spoiled prima donna, Carlotta.

As Christine dazzles audiences with her voice, she rekindles a childhood bond with Raoul, the Vicomte de Chagny, who quickly becomes infatuated with her. Their budding romance incites the jealousy of the Phantom, who sees Christine as his own creation and possession. Amidst extravagant operatic performances, a game of cat and mouse ensues between the Phantom, Christine, and Raoul. The Opera House's personnel, including its managers and chief scene shifter, attempt to cope with the Phantom's increasingly dangerous demands and the mysterious accidents that befall those who defy him. The tension escalates as the Phantom's obsession with Christine grows, leading to dire consequences for all involved in the world of the Opera House.