The statue of Alfonso the Good in the Church of St. Nicholas symbolizes Otranto’s noble past and rightful ownership. Alfonso, the heroic past ruler of Otranto, was poisoned by his chamberlain Ricardo, who usurped the throne and eventually passed it to his grandson Manfred, Otranto’s current illegitimate ruler. During the course of the narrative, the statue sheds various pieces of armor, which magically manifest at various points in the castle—supernatural events that suggest that the castle is haunted by Ricardo’s past misdeeds. As pieces of the statue kill Manfred’s son, assist the true heir Theodore, and prevent Manfred from marrying a new wife who could bear heirs, the spirit of Alfonso cleanses Otranto of Manfred’s corrupt rule.

The statue enacts the prophecy that rulers who outgrow the castle will be ousted—a prediction of doom that Manfred fears but finds hard to interpret. However,  Hippolita instructs Matilda on several occasions to honor and worship the statue of Alfonso—a prescient suggestion that implies that Hippolita remembers who is the rightful heir.