While walking, Tadas tells his friend about how the previous landowner Adam Razumowski died during a hunting trip, how his wife committed suicide, and that their money is buried somewhere.

The two men think she is a ghost of the late Razumowski's wife and make a scene, frightening the woman so that she falls into the pond.

In St. Petersburg, the imperial statesman Mikhail Muravyov informs the Junior Officer of the Imperial Army Janek Razumowski that Czar Alexander II has emancipated the serfs in the Northwestern Krai and commands him to gather his troops to suppress the impending peasant rebellion in that region.

Back at Gruinius' mansion, steward Edmundas (Konstancija's lover) threatens Bernardas to spill his secret because he is late on his bribe payments.

Before a bigger conflict evolves, Janek arrives to the mansion and tells him that he has important news from St. Petersburg.

While the serfs are celebrating Saint Jonas' Festival, the Lithuanian nobility (Bernardas included) are discussing the recent Alexander II's Emancipation Manifesto.

During the raid, Tadas is captured by Janek's troops, knocked unconscious, and left tied up inside a shack.

While wandering around town at night, Tadas discovers Edmundas making love to Konstancija in the stables.

While Janek's men search for rebels, Tadas, feeling guilty for his actions, goes back to the village and gives his dead friend a proper burial.

While wandering through town, he overhears a rebel interrogation led by one of Janek's men and takes the blame on himself for inciting the rebellion.

The interrogated rebels are furious at Tadas for revealing their hiding spot, but he saves them by suddenly launching a successful coup de main at the swamp against the troops.

He tells the men that Tadas was the one who incited the rebellion by starting the fire in the stables and the rebels treat him with more respect.

Back in Gruinius' estate, Bernardas worries about how the world has turned – how he cannot tell his friends from his enemies anymore.

Bernardas tries to throw a burning candle in his face, but ends up being tied up and forced to sign off his estate to him.

After securing the estate, Edmundas begins making plans with Konstancija, and Kristina chances upon both of them kissing.

Back at the rebel hideout, Tadas becomes disillusioned once more and tells everyone that if they continue to fight, they will only bring more trouble upon themselves.

Adam was drinking heavily when Bernardas heard the shouts of a serf kid whose brother was drowning in a creek.

After dragging the kid out of the water, Bernardas saw the drunk Adam brandishing a gun, ready to shoot the unconscious boy because he thought "Lithuanian serfs were worthless".

Bernardas returns home only to find his servant dead, and his family held captive by Snegiryov and Janek.

Snegiryov tells Bernardas that he will be sent to Siberia for helping the rebels and Janek delivers a knockout to the landowner.

Then, Snegiryov threatens to shoot the unconscious Bernardas if the two captives don't tell where Tadas Blinda is hiding.

In truth, after the eye–opening conversation with Bernardas, Tadas no longer believes that the masters are the enemy – rather, the invading Russian soldiers, who want an internal clash so that they would have an excuse to exercise authority over the two groups, are the adversary.

[3] Specifically, they disliked the fact that the state financed a film that portrayed the positive aspects of an outlaw.