Theodore is imprisoned in one of the castle towers. Meanwhile, the herald who interrupted the execution, armed with a giant sword and several knights on horses, is there on behalf of Frederic, Isabella’s father, who wishes for her return. Frederic, a blood relative of Alfonso the Good, wants control of Otranto. Manfred decides that he will need to convince Frederic to allow him to marry Isabella to maintain rule of Otranto. When the knights challenge Manfred to a duel the next day, Manfred throws a feast to de-escalate the situation.

At the feast, Father Jerome reveals that Isabella has again disappeared. Manfred claims that he tried to ensure Isabella’s safe sanctuary at the church, but when one of the friars denies this, the knights become suspicious of Manfred’s story. The knights assemble a search party to locate Isabella. Meanwhile, Manfred assembles his own search party, leaving the tower where Theodore is imprisoned unguarded. Matilda goes to Theodore’s prison, releases him, and falls in love with him. She supplies Theodore with a suit of armor and instructs him to go to the caves in the forest behind the castle.