Don Quixote asks to take his leave of his hosts, for he finds the luxurious life contrary to his oath to chivalry. The duke and duchess are sorry to see him go.
The duchess gives Sancho Teresa's letters. He weeps, upset that Teresa's hopes were raised and now will be dashed. He no longer has his government.
Everyone comes to bid Don Quixote and Sancho goodbye. The majordomo gives Sancho 200 gold crowns.
Altisidora laments Quixote's departure, mentioning she has given him three handkerchiefs and three garters. Quixote asks Sancho if he has them. Sancho admits he has the handkerchiefs, but he threw away the garters. The duchess is surprised by Altisidora's flagrant prank, but the duke indulges it. He demands her garters be restored, or he will have to challenge Quixote.
Don Quixote doesn't wish to fight his kind host. He offers to restore the handkerchiefs, but he points out it is impossible for him to restore the garters. The duchess promises to chastise Altisidora and tells Don Quixote he should go quickly upon his journey, for every minute he inflames the heart of the damsel even more.
Don Quixote and Sancho take their leave.