The scene now shifts again to the Spanish court. The king, the Duke of Castile, Lorenzo, Balthazar, the Ambassador and Bel-Imperia have all congregated to greet the Viceroy of Portugal, who has arrived to see his son's wedding to Bel-Imperia. The king and Viceroy exchange speeches of welcome and praise. Everyone then leaves for a more private chamber in which to celebrate, except for Castile, who keeps his son Lorenzo behind as well.
Castile and Lorenzo then have a father-son talk, during which Castile tells his son that he is worried that Lorenzo's behavior might be endangering Bel- Imperia's marriage prospects. Specifically, Castile has heard rumors that Lorenzo has been denying Hieronimo access to the king and treating him unfairly; he pointedly reminds his son that Hieronimo has gained much admiration at the Spanish court, and it would be an embarrassment if the Knight-Marshal accused Lorenzo of wronging him. Lorenzo claims that these rumors have no foundation. Castile counters that he has seen it happen himself, but his son reassures his father that he was merely trying to prevent Hieronimo for embarrassing himself, in his madness, in front of the King. Lorenzo points out if Hieronimo has misconstrued his actions as hostile, it is only to be expected from a man who has gone out of his mind upon the murder of his son. Castile orders one of the servants to bring Hieronimo to them.
Balthazar and Bel-Imperia enter, with Balthazar speaking words of praise for his love, and Bel-Imperia, for once, returning them in kind. Castile greets both of the lovers and tells Bel-Imperia not to look sternly at him; he is no longer angry with her, he says, now that she is no longer in love with Andrea and instead engaged to the prince.
Hieronimo now enters with the servant, suspicious at having been summoned, fearful that his son's murderers may wish to tie up a loose end to their crime by finishing him off. But he immediately realizes this is not what will happen. The Duke informs him that he wishes to speak about the rumors that Lorenzo has been denying him access to the king and that Hieronimo now finds himself enraged at the Duke's son. Hieronimo dramatically insists this is not the case, drawing his sword and threatening to kill anyone who says otherwise. The Duke then asks Hieronimo and his son to embrace, which they do, exchanging words of friendship. As soon as the Duke is out of earshot, Hieronimo mocks both his and the Duke's words of friendship.
Andrea is getting angrier and angrier; not only does Balthazar still live, but he is now engaged to Bel-Imperia. Moreover, Revenge has been sleeping all this time. Andrea wakes him up noisily, complaining that he has been neglecting his job. Hieronimo has now become friends with Lorenzo, seemingly having forgotten his son's murder. Revenge insists that Hieronimo has done nothing of the sort and that even though he may pretend to be at peace with Lorenzo, in fact his lust for revenge is simply slumbering, as the ghost was.
Revenge then stages a dumb show (a silent masque) for Andrea's sake, which shows a wedding party, at first happy, then descended upon by Hymen, god of marriage, who blows out their wedding torches and drenches them with blood. Andrea says that he understands the meaning of the masque and that the ghost can sleep if he wants to now, while he watches the rest of the play unfold.