- Raquel, Salvador and Enrique get Sgt. Garcia to imprison Don Diego on charges he is Zorro, in hopes that the real Zorro will come to his rescue, and be caught. Zorro must somehow escape from his jail cell.
- Raquel Toledano reveals to Quintana that she is an agent of The Eagle, and commands him to take orders from her. She learns from Quintana that Zorro switched the barrels of stolen gunpowder with barrels of brandy in the previous episode. Quintana claims he will find Zorro and force him to give up the gunpowder. Raquel sends Sgt. Garcia and his soldiers to search the countryside for Zorro and the gunpowder. They nearly discover Diego and Bernardo while they are in the process of hiding it. Diego sends out his horse,Tornado, as a diversion, knowing that Garcia will try to capture Tornado for himself. Garcia and Cpl Reyes capture Tornado, bring him to the cuartel and try to disguise him with some paint and a sombrero. Diego comes to visit Garcia, and finds that Tornado is giving Garcia a hard time. Tornado tries to approach Diego, who motions for Tornado to go away. An agent of the Eagle observes this and suspects Diego is Zorro. Diego then visits Raquel to ask questions about a letter she wrote in the previous episode which told Garcia to stop looking for the gunpowder. Raquel decides Diego is dangerous and plots with the agents to arrest Diego on the suspicion of being Zorro. Diego is tricked by Garcia and arrested. Diego reprimands Garcia for betraying him, but Garcia reassures him that it is only a trap to capture the real Zorro when he comes to rescue Diego. While Sgt. Garcia is sleeping, Diego has Tornado bring the keys to his cell. Diego then uses Garcia's sword to make himself a Zorro mask and cape out of blankets. Zorro commands Garcia to meet him at the location of the gunpowder the next day, and then uses Garcia to escape from the cuartel. Diego, Garcia and Reyes later meet at the tavern to celebrate the safe return of all the gunpowder to San Francisco.
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