El Gallo tells Luisa to pack her things for the journey, but before she goes inside to do so, he asks her to give him her treasured necklace, a relic of her dead mother, as a pledge that she will return. As she goes inside, El Gallo promises her a world of beauty and grandeur; at the same time, Matt approaches, giving a contrasting version of the cruel experiences that one can suffer ("I Can See It" (reprise)). As Luisa disappears, El Gallo turns to leave, the injured Matt makes a pitiful attempt to stop him from hurting Luisa, but El Gallo knocks him away and disappears. Luisa returns to find that El Gallo has left with her necklace, and she sits in tears. El Gallo, as the narrator, explains poetically that he had to hurt Matt and Luisa, and also himself in the process. Matt comforts Luisa, and he tells her a little about his experiences, and the two realize that everything they wanted was each other ("They Were You"; "Metaphor" (reprise)), but that they now understand that more deeply. The Fathers return joyfully and are about to tear down the wall, when El Gallo reminds them that the wall must always remain ("Try to Remember" (reprise)).