Rubinstein's opera is thoroughly Russian in its oriental exoticism and choice of voices. It exercised influence on Tchaikowsky's Eugene Onegin but in many respects is a highly original work. The Caucasian Dance and ballet music from the opera are sometimes heard in the concert-hall, while the Demon's romance Nye plach' ditya (Do not weep, my child) and Na vozdushnom okeanye (On the ocean of air) were favourites of Chaliapin's repertoire.

The Demon is disillusioned and rejects the Angels' suggestion of redemption through love. By the riverside Tamara dreams of her future marriage, but hears the voice of the Demon, whom, for a moment she sees in his brilliance and glory. Meanwhile Prince Sinodal travels towards her, held up on his journey in a mountain region. The Demon lulls him to sleep with dreams of Tamara, but the Tartars attack, Sinodal is wounded and dies. In Prince Gudal's castle news of Sinodal is awaited. A messenger announces his death and the body is brought in. The weeping Tamara is consoled by the voice of the Demon, who promises to come to her that night. She pleads with her father to allow her to enter a convent and he reluctantly yields to her entreaties. In the convent the Demon appears, but his way is barred by the Angel. He enters Tamara's room and confesses his own suffering. Feeling pity, Tamara demands that he forswear evil. Finally she gives way, declaring her love for him. In an epilogue she is saved by the Angel and in a final apotheosis ascends to Heaven.