Lorenzo and Jessica, still at Belmont, sit outside and enjoy the night. They compare the night to the stories of Troilus and Cressida, Pyramus and Thisbe, and Dido and Aeneus, and then extend the analogy to their own love affair. They are interrupted by Stefano, who tells them that Portia is returning home with Nerissa. Lancelot then arrives and informs Lorenzo that Bassanio will also be back by morning. Both Lorenzo and Jessica return to the house and listen to music.

Portia and Nerissa, dressed as themselves again, return home and enter the building. Lorenzo recognizes Portia's voice and comes to greet her. She orders the servants to pretend as if she had never left, and asks Lorenzo and Jessica to do the same. Soon thereafter Bassanio, Graziano and Antonio arrive.

Nerissa demands that Graziano show her the ring he gave away to Portia's "clerk" in Venice. They start to argue over it, with Graziano defending his action as a form of kindness for Antonio. Portia overhears them and pretends to "discover" what happened. She then demands that Bassanio show her his ring, which he of course cannot do. Portia and Nerissa then berate their husbands for giving away the rings, and even tell them that they would prefer to sleep with the doctor and his clerk rather than with their unfaithful husbands.

Antonio offers his assurance that neither Bassanio nor Graziano will ever give away their wives' gifts again. Portia thanks him and asks him to give Bassanio another ring to keep. Bassanio looks at the ring and recognizes it as being the same ring he gave away. Portia then tells him that the doctor came back to Belmont and slept with her. Bassanio is amazed and does not know how to respond.

Portia finally clears up the confusion by informing Bassanio that she and Nerissa were the doctor and the clerk. She further has good news for Antonio, namely a letter that indicates that three of his ships arrived in port safely. Nerissa then hands Lorenzo the deed from Shylock in which he inherits everything after Shylock dies. The play ends with Graziano promising to forever keep Nerissa's ring safe.