Don Quixote and Sancho are in bad humor. Sancho is thinking of finding a way to leave Quixote's service, as he considers him foolish.
Don Quixote is in a meadow in the woods when he sees a hawking party. A lady is among them. He sends Sancho with a greeting from him.
The lady welcomes them, saying she has heard of them. She invites them to come to her estate. The duke and duchess have read the book about Don Quixote and are aware of his insanity. They intend to amuse themselves by indulging his fancies, as they are fond of books on chivalry as well.
Sancho, while helping Quixote to dismount, trips him and causes him to fall from his horse. However, the knight greets the duke and duchess—saying he is at their service. He remarks that Sancho is better at loosening his tongue than tightening pack saddles. The duchess, though, likes how amusing Sancho is.