Zorro and Felipe bravely made their last stand, but they face only their horses: Toronado even found a way out so they get home. Mendoza returns with nothing but Zorro's costume, still gets the 500 pesos reward, but is taxed on his windfall during military service- at 100%. Diego learns from Dr. Hernandez the news of Zorro's death makes the alcalde even crueler, but is too sick to stand up. Victoria tells him the alcalde resumes the forced labor, invents new taxes, even on income, and prepares a memorial service with a fake Zorro-corps to bury the myth.

Robbers take the garrison's pay; Diego's father, don Alejandro de la Vega, witnesses that and tries to stop them, but gets knocked down, hard; Victoria finds him and brings him to the hacienda, where doctor Hernandez concludes he may never come out of his coma again. Don Diego is heartbroken, feels guilty he may never get a chance to tell his dad about his secret life as Zorro. The alcalde blames the crime on Zorro and the doctor sighs the only medicine that might give Alejandro a fighting chance was stolen with the gold.