Quixote continues to argue with the priest from Toledo. While the stories about knights and chivalry may be exaggerated, he says, the level of detail in the literature suggests they must have a large amount of truth to them. Quixote tells his own long and intricate story, hoping the priest will change his mind regarding fiction. As the subject turns to Panza’s potential inheritance, a goat bursts into the campsite. The goat is hotly pursued by a goatherd, who agrees to tell his own story to the traveling party. 

The goatherd’s name is Eugenio. Like many of his neighbors, he fell in love with a beautiful local woman named Leandra. The wealthy father of Leandra allowed her to select her own husband because he could not choose for himself among the many suitors that came to ask for her hand. She chose Vicente de la Rosa, who was a highly decorated soldier who had recently returned from the war, though there was much skepticism about the truth of his claims. Vicente and Leandra fled the town together before anyone realized she had made her choice. The town was shocked at the turn of events, but after three days of searching she was found in a cave wearing only a chemise and missing all of the valuables she took from her father’s house when she left with Vicente.