At night, royal troops bring a jeweled sword, believed to have belonged to Charlemagne which the alcalde must secretly hide a while. Next the theater troop of don Alfonso Bautista Alvarado de Figueroa, a dwarf, arrives in L.A. When the alcalde insists on an excessive amusement tax of 50 pesos, Alfonso inquires about the premium of 600 on Zorro's head and learns that money is in his office, so he sneaks, steals it and pretends to find it where he buried it. Felipe lip-reads he's after the sword. Alfonso hypnotizes the alcalde, but Zorro also attends the performance in ...

A grandfather shows his girl Laura the hide-out cave, and finds there Diego De la Vega's diary about the Devil's fortress, which was used as a feared political prison. Victoria showed a letter, allegedly from her father Alfonso's cell mate, if true he didn't die in the Mexican revolution but is seriously ill. Diego volunteers to go there to speak to the commandant, actually Zorro comes in his saddle bag after promising Victoria his help. The alcalde orders Mendoza to accompany him on a week's trip to the fortress, he wanted an excuse since years, so they go plead ...