The squires discuss the difficulty of their lives and their hopes of rewards. The other squire is sometimes tempted to return home to his family. Sancho talks about how he wants his daughter to become a countess. The other squire calls Sancho’s daughter a whore, which offends Sancho. The other squire chides Sancho on not understanding their language—what sounds like insults are compliments. Sancho chooses not to use the language.
Sancho admits he thinks his master is more madman than knight. The other squire says his master became a madman so that other knights can become sane. The Knight of the Wood (his master) is in love with a rough woman. The other squire says his master is crazy but valiant, but more of a rogue than anything.
Sancho doesn’t believe Quixote is a rogue. The other squire says they are blind men being lead by the blind. Adventurers don’t always come to good ends, and maybe they should retire.
The other squire shares his food and wine, which are of good quality Sancho says they don’t have good food due to Quixote’s idea about a knight’s diet. The other squire’s master has the same diet, but the squire doesn’t follow it.
Sancho brags that he comes from a family of talented wine tasters, and he has the same skill to tell a wine by its smell. The two fall asleep.