The prince is finally left alone by the rabble that has harried him into London, and he wanders aimlessly about, not knowing where he is until he comes to Christ's Hospital. There, he sees some children dressed as apprentices, playing in the yard. He talks to them and announces his claim that he is Edward, Prince of Wales; his actions at first amuse the boys, but then they begin to mock him. Angry and frustrated, he kicks one of the boys and threatens them all with the gallows, whereupon they beat him and set their dogs on him.
As night comes on, the bruised, battered, and muddied prince is confused and lost. However, he remembers Tom's story and begins to look for Offal Court. He also vows to provide learning for the children of Christ's Hospital, not just bread and shelter. Suddenly, John Canty collars him and drags him home — and again a crowd gathers to jeer as Edward claims to be the prince and demands to be taken immediately to the king. Everyone he has met outside the palace walls believes that he is mad — nothing more than a common beggar who has lost his wits.
Alone in his royal apartment, Tom awaits the prince's return. He admires his new finery in the mirror and practices a regal walk, saluting with his sword as he has seen one of the guards do. As he examines all of the ornaments in the apartment and seats himself in the soft chairs, he wonders what his friends would think of him now. Would they think him mad — or would they believe him? Then he suddenly begins to worry about the real prince's absence. He is also fearful about the terrible things that might happen to him if he is discovered. Might the nobles not, as he has heard, suddenly hang him? His fears rise, especially when the Lady Jane Grey enters, and he confesses that he is only Tom Canty of Offal Court; he begs that he might see the prince and get his rags back. When he continues to beg for mercy, she becomes frightened and flees. Tom then becomes more terrified than ever, and he is sure that the whole court will be upon him soon. However, word spreads throughout the palace that "the prince hath gone mad!" A royal proclamation quickly forbids any mention of this, and all such talk stops immediately.
