Gurth fights for his purse. At the tournament, the masked knight shows his favour to Rowena. The masked knight, with the help of the Black Knight defeats Sir Brian de Bois Guilbert. On the command of Prince John, the identity of the masked knight is revealed and in the ensuing shocked reaction of the crowd, the knight disappears with the help of Isaac and Rebecca.

Prince John continues with his plan to take the English throne while his men hunt for the injured Sir Wilfred of Ivanhoe, being sheltered by Isaac and Rebecca. At a feast hosted by Prince John, tensions escalate between Normans and Saxons. Sir Maurice de Bracy intends to win the favour of the Lady Rowena but first he has to disguise his men as outlaws.

Cedric and Isaac with their caravan are captured by the Normans and taken to Torquilstone Castle. De Bracy recognises Ivanhoe but stays silent for the moment. At the castle, Rowena is reunited with Ivanhoe. Elsewhere, the Black Knight is allied with Locksley and his men to besiege the castle.

Preparations are being made to storm Torquilstone Castle. A ransom note is delivered and a plan is hatched to free Cedric while at the same time learn the defences of the castle. Athelstane regrets a deal with the Normans while Rebecca continues to tend the injured Ivanhoe. The assault on the castle begins.

The Black Knight and Cedric lead the assault on the castle aided by Urfried on the inside who exacts her revenge on the Normans. Rebecca and the injured Ivanhoe are still prisoners. Cedric and Ivanhoe are briefly reunited and Sir Brian escapes with an important hostage. Ivanhoe also disappears but Malvoisin is on his trail.