Quixote is angry with Sancho, asking him what he was thinking when he started braying to the village that was sensitive about the insult. It was just as stupid as mentioning rope to a room of men sentenced to be hanged.
Sancho accuses Quixote of leaving him to be pummeled. Quixote seems to miss the point and says he didn't flee. Like a wise man, he chose to withdraw.
Sancho is in pain, and Quixote tells him it is from where the lance struck him. Sancho sarcastically thanks him for this clever diagnosis. He complains about how he is always left to receive the blows, and what fools squires were in the past to serve knight-errants. They don't even get a good amount of drink or good sleeping arrangements.
Quixote allows Sancho to talk away, figuring that it probably keeps him from noticing his aches and pains. Sancho remarks that he at least made money when hired by Samson Carrasco's brother to farm. Quixote finally agrees to pay Sancho a monthly wage.
Sancho says he should be owed for the island promised to him. He tells Quixote he promised it twenty years ago. Quixote calls Sancho an ingrate, and Sancho apologizes. They make up.
Sancho spends the night in pain, and Quixote spends it in meditation.