The most significant character is the Phantom. Eric is a musical genius who has been disfigured so badly he hides his scars under a mask. In order to unleash his creativity, he mentors a beautiful young singer named Christine Daae, pretending to be an angel sent by her dead father. But others see him as a frightening ghost, and he uses that to his advantage by demanding a salary and reserved seating in box five in the theater for each performance. Christine begins to notice the darker side of Eric that others see, when he becomes jealous of her relationship with her childhood friend Raoul.
Christine Daae is young, beautiful, and talented. She's kind and hard-working, but the losses she has suffered make her somewhat fragile. A relationship with her childhood friend, Raoul, gives her strength and helps her to see the world and people as they really are. Watching Christine grow from a shy, unsure girl into a strong, confident woman is almost as entertaining as watching the development of her singing talent.
The Vicomte de Chagny, Raoul, is handsome, brave, and charming. He is a tie to Christine's happier childhood, and he wants to be her hero. He makes a plan to rescue Christine by capturing Eric, but because he's a straightforward, business-minded man, he doesn't understand the complex passions and brilliance that rule Eric. This causes him to underestimate the phantom. Raoul is likeable and confident, but not quite as smart and strong as he thinks he is. But he cares enough about Christine to risk his life for her, and that's a young girl's dream come true.
Carlotta Guidicelli is a prima donna. She's used to having everything her way and being the center of attention. She's totally self-absorbed and believes everyone else's interest in her matches her own. She likes to watch others drop everything and race to do her bidding. This adds a touch of comedy to the tragedy, making Carlotta a sympathetic character in spite of her vanity and mean streak.
Madame Giry is commanding and good at her job. She trains her charges well as the ballet choreographer and knows everyone's business. She protects the ballet, but she also tries to protect the phantom. She sees all and hears all but shares only what she chooses. She is the type of character that's important to every dramatic perfomance--the one who fills in the gaps and pulls everything together.