In a room at Don Cyprian, the Duke of Castille’s house, Lorenzo tries to console a disconsolate Balthazar that Bel-Imperia will come to love him in time. Lorenzo has already devised a plan for Lorenzo to get to the bottom of his sister’s attitude toward the prince. He tells Balthazar to trust him and calls in his servant, Pedringano. Lorenzo reminds Pedringano that he saved him from punishment for being a go-between for Bel-Imperia and Andrea. He promises him further rewards if Pedringano tells him who loves Bel-Imperia now. Pedringano does not know, and Lorenzo threatens to kill him. Under duress, Pedringano says she likely loves Horatio. He claims to have intercepted and read love letters from Bel-Imperia to Horatio. Lorenzo dismisses Pedringano to go attend on Bel-Imperia, promising rewards if he proves loyal. 

Balthazar is upset by Pedringano’s revelation. Horatio seems destined to be a constant plague in his life: He shamed Balthazar by defeating him, and now he is the object of Bel-Imperia’s affections. Lorenzo promises him that they will get rid of Horatio.