Wamba enters Torquilstone as a priest to help Cedric escape. Locksley and the Outlaws lay siege to the castle which is set alight. Bois-Guilbert and Rebecca flee to Templestowe,while Ivanhoe and Isaac are rescued.

Sir Brian de Bois-Guilbert has fallen in love with Rebecca. The Grand Master of the Knights Templar, Lucas de Beaumanoir, is consumed with anger and sends her to trial as a witch, her life is at stake if Ivanhoe does not hear of her plight.

The Knights Templar condemn Rebecca to be burnt at the stake but Ivanhoe champions her against Bois-Guilbert. Athelstane comes to life at his funeral, Rowena marries Ivanhoe, while Richard and John are reconciled.