Don Quixote awakens in a raving fit, and his friends grab hold and force him back into bed. At this, the simple housekeeper is fully convinced that all books are bedeviled. She collects even those volumes that have been reprieved and burns them all. Meanwhile, the barber and the curate are equally fearful for Don Quixote's health. They arrange to have the entrance to his study walled up and instruct the niece and housekeeper to tell the knight that an evil conjurer, mounted on a fiery dragon, has removed not only the books, but the entire library.
The knight accepts the explanation, and while he seems to be recovering his senses, he quietly schemes to continue his profession of chivalry. Sancho Panza comes now into the scene, for Don Quixote manages to convince this poor, honest, and ignorant peasant to serve as his squire. Promising many rewards, especially mentioning that he might conquer some island and make his squire governor of the place, he induces Sancho to steal quietly from the village in the middle of the night in order to outwit possible pursuers.
