Book 2, Part 1: The curate and the barber return to Quixote's home a month later, believing that the Don has indeed been cured. Soon, however, they realize that they are terribly mistaken. Next, Sancho enters and explains to his friend and master that the whole town thinks them both crazy. The squire does, however, still possess some hope, it seems, of eventually gaining the coveted island the Don has promised him. Alone, Quixote and Sancho secretly plan to leave again in eight days, ready for another adventure.
In this opening chapter the reader also learns about an imposter author of Moorish origin who has written an unauthentic sequel to Cervantes' first book simply to make money.
Book 2, Part 2: Sancho prepares his wife for his departure, the two having a long argument over the marriage of their daughter. Meanwhile, Don Quixote explains to his housekeeper the difference between knights-errant and courtiers, of course defending his own status as the former. After the squire and master are reunited, Sancho asks to be paid in monthly wages, but is refused. The two head for El Toboso, home of the infallible Lady Dulcinea.