The goat herd, Eugenio, tells his tale of how he wooed a village girl of great wealth and beauty, along with so many other suitors, though she chose another man who convinced her to rob her father and then left her in a cave after taking all of her possessions. Her father put her away in a convent, and all of her dejected suitors took to a life of tending sheep or goats because of their misery; and that is why Eugenio talks to his female goat the way he does.
While all in company enjoyed the story, Don Quixote began a disagreement with the goat herd because he was inclined to right the wrong, though the goat herd thought he was joking and insulted Quixote, which caused a physical confrontation involving the two plus Sancho Panza. This scuffle was interrupted by a procession of religious village men praying for rain and carrying a holy shrine of the Virgin, though Quixote went to intervene thinking it to be a noble lady being carried away against her will; and after being pummeled again, he was finally taken away by the curate, the barber, Sancho, and the ox cart to his village where he was able to rest in his home again in peace and quiet.
Here, at the end of Part I, the author shares his discovery of parchments with epitaphs and sonnets about Don Quixote, Lady Dulcinea, and Sancho Panza, and leaves an opening in hopes of finding more adventurous histories about the famous knight-errant of La Mancha.