The new guest is a Jew named Sir Isaac of York. This causes quite a stir amongst the group, and many insults, but the Jew is still allowed into the hall. Sir Isaac is bent from constant humble stooping, his sharp features wrinkled with age. He wears simple clothes and no weapon. Cedric and his party admit him with little ceremony, coolly ignoring him. He is offered no place at the table, except by the Palmer, who forfeits his place for the Jew.
At the table, the Templar questions Cedric's neglect of Norman-French, to which Cedric responds with much trumpeting of his own race, language, and history. They then begin to speak of noble soldiers who fought for the Cross in the Holy Land. The Templar suggests that his order is the pinnacle of bravery, but the Palmer praises the English, including King Richard. This angers the Templar but delights Cedric. The Palmer then names the valiant English soldiers, nearly all of Saxon blood. The last is the Knight of Ivanhoe, whom the angry Bois-Guilbert wishes he could fight in the tournament. Both the Pilgrim and Lady Rowena speak of and defend Ivanhoe's honor. The Prior, disliking conflict, does his best to change the subject and calm rising tempers.
After dinner, the Templar asks the Jew if he is attending the tournament. When he says yes, the Templar immediately accuses him of cruel usury, but Isaac said he was just going to seek the help of a friend.
