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El Cuchillo and his men return to Los Angeles to loot the city, but Zorro is prepared for them and deals with the bandits one by one, leaving another "Z" on El Cuchillo's coat just as he is leaving the tailor shop after getting it repaired. After several more attempts that are all thwarted by Zorro, El Cuchillo goes to the de la Vega hacienda and holds the family for ransom. Eventually Bernardo helps Don Diego escape and the final swordfight ensues between Cuchillo and Zorro. But not before the bandito realizes that Don Diego and Zorro are one and the same.