As he lies on the ground unable to move, Don Quijote tries to remember a similar situation in one of the many books of chivalry he has read. He soon remembers one where someone named Valdovinos lies wounded up on a mountain and his uncle the Marqués of Mantua finds him. As he is reciting the ballad, a farmer from his own village shows up and Don Quijote believes himself to be Valdovinos and his neighbor, the Marqués. The farmer recognizes him, calling him Mr. Quijana and helps him up. While they are returning home, Don Quijote babbles endlessly and changes the story he is in -- in midstream. The farmer, realizing his neighbor is currently out of his mind, tries to introduce some reality into the midst of these ravings by telling Don Quijote that he is Mr. Quijana and his own name is Pedro Alonso. Don Quijote tells him that not only can he be the people he has just mentioned; but he could also be the Twelve Peers of France or the Nine Worthies since his heroic deeds surpass all of theirs!
Meanwhile, the housekeeper and niece are talking to the village priest and the barber about Don Quijote's disappearance, his previous strange behaviors and his dream of becoming a knight errant. They feel that the books are to blame for unhinging his previously sound mind.
As they are making plans to burn the books, Don Quijote arrives with the farmer, and he instructs them to open the door for the four people arriving: Sir Valdovinos, Marqués of Mantua, the Moor Abindarraez, and Rodrigo of Narvaez. They rush to greet him and quickly get Don Quijote into bed while he tells them of the giants that he fought.
