The broken truce has convinced Joaquin that Diego cannot be trusted and, that if not for Zorro, he would have been killed. When Diego and Bernardo ride to his camp to explain, the rebel leader orders his men to lock the visitors in leg irons until he can decide upon a suitable fate for them. Joaquin announces his plans to kill the governor the next day while he visits a local shrine. When he tries to ride there, however, Joaquin is accidentally captured by Sergeant Garcia.
The sergeant takes Joaquin and Theresa to Rico and the corrupt official decides to use the rebel to help him gain control. He tells Briones to escort Joaquin to the shrine, where the murder will be carried out. If Joaquin refuses, Theresa will die. Zorro, having freed himself and Bernardo, stops Joaquin just as he is about to kill the governor.
Hoping to make the two men settle their differences, Zorro puts them in leg irons and gives each of them the other man's key. He then rides to the jail to free Theresa, but Briones draws his sword and prepares for a fight. The governor and Joaquin arrive and order the battle stopped, for the truth has been told. Rico is shot while trying to escape and Briones is taken prisoner. The governor orders all charges against the rebels dropped and declares a fiesta to be held to celebrate the end of Rico's reign.
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