King Claudius has hastily sent for Rosencrantz and Guildenstern and welcomes them to his court. Claudius hopes Rosencrantz and Guildenstern, friends of Prince Hamlet, will discover the cause of Hamlet's recent madness. Polonius enters with two reports: the first concerns Norway; the second concerns Hamlet. The ambassador Valtemand informs Claudius that the King of Norway has agreed to suppress his nephew's challenges against Denmark. Taking advantage of his uncle's sickness, the hotheaded young Fortinbras disguised his actions against Denmark as legitimate movements against Poland. Upon learning of Fortinbras' true intentions, the King of Norway forced Fortinbras to end all operations against Claudius and Denmark. Valtemand reports finally that Norway requests peaceful passage through Denmark in order to reach Poland. King Claudius is greatly pleased.
Polonius continues with the second order of business, Prince Hamlet's madness. The court advisor offers a long-winded prologue to his report -- ironically on the importance of brevity -- and Queen Gertrude begs him to discuss "'More matter with less art.'" Act 2, Scene 2, line 97 Polonius reports that Ophelia's rejection of Hamlet's desire has caused the Prince's insanity. He produces a poetic love letter from Hamlet to Ophelia as evidence. To prove his theory further, Polonius suggests that he and the King secretly observe a rigged encounter between Hamlet and Ophelia. King Claudius and Queen Gertrude agree to the set-up.
Hamlet enters, strangely attired and listlessly reading "'Words, words, words.'" Act 2, Scene 2, line 192 from a book. Noticing a hint of rationality in Hamlet's babbling, Polonius remarks, "'Though this be madness, yet there is method in't.'" Act 2, Scene 2, lines 203-204 Hamlet is surprised and suspicious to meet Rosencrantz and Guildenstern at Elsinore. The Prince's distrust is confirmed when Guildenstern admits that Claudius sent for them.
Hoping to cheer Hamlet up, Guildenstern informs the Prince that a troupe of traveling actors has arrived at Elsinore castle to entertain him. Hamlet welcomes the players and immediately asks one actor to perform an impassioned monologue on the murder of the Trojan King Priam. Greatly affected, a plan for vengeance hatches in Hamlet's mind. The Prince arranges for the troupe to perform a play on the infamous murder of Gonzago the following night. The play will closely mirror the murder of King Hamlet and will include a speech written by Hamlet himself. The Prince expects that Claudius' reaction to the treacherous and too-familiar sketch will proclaim his guilt. As Hamlet plots, "'The play's the thing / Wherein I'll catch the conscience of the King.'" Act 2, Scene 2, lines 581-582