Sir Coward feigns severe illness to get himself and Lurkalot into the castle, where they are incarcerated. He suffers withdrawal symptoms from the loss of his hookah and Lurkalot offers to make him a remedy based on sulphur and charcoal, but spills in saltpetre by accident. He mixes it together, but Sir Coward, who hates taking medicine, throws it in the direction of a fire, where it ignites and blows open the door. Lurkalot calls his new invention "gone powder" and they use it to open the castle gate so Robin Hood can attack. Meanwhile Sir Braggart duels Lurkalot and reveals that he must be Richard's twin brother. The two battle all over the castle, and he is eventually forced to flee in disgrace. Richard then resumes his rule and everything is right in the land. He agrees to marry Lady Lobelia and makes Lurkalot a knight, but Lurkalot gets Lady Lobelia whilst Richard returns to Scheherazade.