After an overture the production starts with a musical monologue from apostle Judas Iscariot, who expresses concern over Jesus' ever rising popularity as a "king" and the negative repercussions that it will have ("Heaven on Their Minds"). While Judas still loves Jesus, he believes that Jesus is just a man and that the movement is getting too large and will eventually be seen as a threat to the higher order. Judas believes, once this comes to pass, not only will Jesus receive the consequences, but so will all of his followers. Unlike Jesus, Judas views the movement as a secular quest to end poverty and aid the poor. However, Judas' warning falls on deaf ears, as Jesus' followers have their minds set on going to Jerusalem with Jesus. As they question Jesus as to when they will be arriving in Jerusalem, Jesus tells them to stop worrying about the future since whatever will happen is already predetermined by fate ("What's the Buzz?").

Recognizing that Jesus is irritated by the badgering from his followers, Mary Magdalene helps Jesus relax by him with ointment. However, Judas expresses concern over the fact that Jesus is associating himself with Mary (a prostitute). Judas says that by associating with her, he (Jesus) is contradicting everything that he says and this, in turn, will be used against him and his followers ("Strange Thing Mystifying"). Jesus gets angry and tells Judas that unless he is without sin himself, he should not be judging the character of others. Jesus then reproaches his apostles of being "shallow, thick and slow," and exclaims that not a single man among them cares about him.

Mary Magdalene tries to assure Jesus that everything will be all right and attempts to relax him with more ointment ("Everything's Alright"). In response, Judas angrily insists that the money used to obtain the ointment should have been used for more to help the poor. Jesus sadly explains that he and his followers do not have the resources to help every poor person.

Meanwhile, Caiaphas, Annas and other high-ranking proud Jewish priests meet to discuss Jesus and his movement. At this point, his followers continue to grow by the thousands, so much that even the higher order is aware of the hype. Given the size of Jesus' movement and the fact that the movement consists of Jews who are unwilling to accept the Romans as their kings (in contrast to the high Jewish priests), the priests believe that he is becoming a threat to the Roman Empire. And if the Roman Empire is threatened, then many Jews will suffer – perhaps even those who are not following Jesus. As all of the priests attempt to solve the problem of Jesus and his followers, Caiaphas states that the only real solution is to kill Jesus ("This Jesus Must Die").

As Jesus and his followers arrive in Jerusalem, they are confronted by Caiaphas, who demands that Jesus disband them. However, Jesus replies that putting an end to the hysteria is impossible ("Hosanna"). Afterwards, Jesus is approached by his apostle Simon Zealotes. Realizing the popularity that Jesus has attained, Simon suggests that he (Jesus) lead his mob in a war against Rome and gain absolute power ("Simon Zealotes"). But Jesus vehemently rejects this suggestion, stating that none of his followers understand what true power is nor do they understand his true message ("Poor Jerusalem").

Meanwhile, Pontius Pilate, the governor of Judea, reveals that he has dreamed of meeting with Jesus and seen the aftermath of Jesus' death, where he, Pilate receives all of the blame. However, Pilate is not entirely clear of the meaning of his dream ("Pilate's Dream").

Jesus arrives at the temple in Jerusalem and finds that it is being used for selling everything from weapons to prostitutes and drugs. When Jesus arrives, he is furious and demands that the merchants and money changers leave the temple ("The Temple"). Angry and tired, Jesus wanders off and gets confronted by a mob of lepers, cripples, and beggars, all wanting to be healed. However, the mob is too large and Jesus gets overwhelmed. Unable to solve everyone's problems for them, Jesus tells the crowd to heal themselves.

After the mob leaves, Mary Magdalene finds Jesus upset. Mary tells him to rest. ("Everything's Alright-Reprise") While Jesus is asleep, Mary reflects on the fact that while she is in love with Jesus, he is unlike any man that she has loved before. As a result, Mary does not know how to cope with her feelings ("I Don't Know How to Love Him").

Meanwhile, Judas worries more and more about Jesus' ever growing movement. He promises to help the priests against Jesus, while emphasizing that he is acting with unselfish motives ("Damned for All Time"). Caiaphas demands that Judas should reveal the whereabouts of Jesus, so that the authorities can apprehend him and imprison him. In exchange for the information, Judas is offered money. Judas initially turns down the offer, as it raises some ethical concerns within him. But he eventually obliges when Caiaphas tells of charities that he can give the money to. Judas decides that it would be better to turn Jesus in before his movement gets any bigger, which would thus lead to the deaths of not only him, but all of his followers as well. Thus, presumably to save the thousands of followers and himself, Judas reveals that on Thursday night, Jesus will be at the garden of Gethsemane ("Blood Money").