The narrator comments that the tale about Don Quixote fighting the Biscayan ends abruptly at the two lifting their swords. However, while in Alcana of Toledo, a boy sells him some pamphlets. These pamphlets contain the tale of Don Quixote, including the missing section--though it was written by an Arab historian. The narrator hires the boy to translate the pamphlets into Spanish.
The tale of the Biscayan is concluded:
Don Quixote draws his sword. The bystanders try to interfere, but the Biscayan squire threatens them to let them fight. Quixote loses half of his ear in the fight, but he overpowers the other man. He is about to behead him when the ladies ask him to show mercy. Don Quixote promises to spare the man’s life if he presents himself to Dulcinea and agrees to do anything that she asks. They agree to his terms.