In the dead of night, Sancho awakens to a great noise of bells and outcries and trumpets and drums. Twenty men rush into his chamber shouting that the enemy has overrun the island. "Arm, my Lord Governor," they cry, and clap Sancho between two huge shields so that he can hardly move. Trying to lead his men in a march, he takes one step and falls, helpless as a turtle. The men douse their lights and trample all over him, making as much fuss and noise as if a tremendous combat were in progress. The joke finally concludes with shouts of victory and poor Sancho is raised and returned to bed. Wordlessly, the governor dons his clothes and greets Dapple in his stable with a kiss. Sancho now bids farewell to all his aides and with some bread, cheese, and provender for the ass, sets off for the ducal castle.
Don Quixote looks forward to the joust with the duenna's daughter's false lover. The author relates that the young man has left the country "to avoid having Donna Rodriguez for a mother-in-law," and the duke substitutes his footman, Tosilos, to act the role. Meanwhile, Sancho is on the road to the castle. He meets some pilgrims and recognizes his old friend and neighbor Ricote, a Moorish shopkeeper, among the foreigners. Over a huge meal, Ricote tells Sancho that he is exiled from Spain because he is a Moor, and his wife and daughter live in Algiers. Wishing to recover some gold which he buried near his house, Ricote is returning to the town, and asks Sancho to help him carry the money away. Sancho is covetous, he says, of nothing but his own freedom and tells the incredulous Ricote the story of his recent governorship. Exchanging some town gossip, especially talking of Don Gregorio, the lover of Ricote's daughter, who has disappeared, the two friends embrace and go their separate ways.