It is a calm morning in Spanish California, and Sergeant Dimetrio Lopez Garcia is putting up posters, with another soldier, which are asking for reward money for Don Ignacio Torres and the now famous Zorro.

Finding that Don Torres is in hiding at the Mission, Monastario forces the local Indians into hard labor until the Padre agrees to surrender the fugitive.

After failing in his attempt to sneak food to the fugitive in the Mission where Captain Monastario has laid siege, Zorro tries to scare the soldiers away by spreading a rumor about the mad monk who supposedly haunts the place.

When Captain Monastario arrests the fugitive Torres' wife and daughter, hoping to catch Zorro trying to rescue them, he instead catches Don Diego's chief vacquero Benito, who is in love with the daughter Elena.

Captain Monastario's latest plan is to discredit Zorro by having a prisoner who killed a man in a sword fight pose as the masked avenger and rob the local landowners at a dinner party.

Faking Martinez's death, Captain Monastario again tries to use him to impersonate and disgrace Zorro by robbing a church, leaving Zorro confused as to who could be the impostor this time.