In a sleazy pub, Bill Sikes is alone with his hideous dog in a room where daylight never penetrates. A fracas between master and beast is interrupted by the entrance of Fagin. Fagin is reminded that his security depends upon protecting Sikes, who threatens: "If I go, you go; so take care of me." Fagin has had their plunder melted and pays Sikes his share in coin.
A younger man brings in refreshments. The waiter reports that Nancy is on the premises, and Sikes sends for her. Later, the girl and Sikes leave together.
Meanwhile, Oliver is in a contented mood as he proceeds toward the book stall. He takes a wrong turn and is halfway down a side street before realizing his error. Suddenly a young woman wraps her arms around his neck, screaming, "Oh, my dear brother." It is Nancy, who cries out to people in the vicinity that her younger brother had left home to take up evil ways. Sikes and his dog emerge from a beer tavern to join the commotion. The man pounds Oliver on the head with the books that he was carrying while the bystanders shout their approval. The frail boy is quickly overpowered and helplessly dragged away by his captors.
During this time, Mrs. Bedwin is waiting anxiously, and the two old gentlemen maintain their vigil in the dark parlor.
Oliver is pushed along between Nancy and Sikes. The man promises that the dog, Bull's-eye, will attack the boy if he calls for aid. The night is so dark and foggy that Oliver has no idea where they are. As a church bell strikes eight, Nancy speaks in pity of the condemned men who will go to the gallows the next time eight o'clock is struck.
