When the two arrive in Los Angeles months later, they are met by Diego's childhood friend Esteban, who is now capitán of the guard.

He confronts and defeats Esteban's tax collector, then instructs the peasant to spread the word that El Zorro has returned.

A duel ensues with Esteban, and Zorro escapes by again jumping from a high wall, but this time injuring his foot and hobbling away.

Later that night, a drunken Florinda attempts to seduce Diego at his hacienda, but Esteban arrives to speak about the evening's events.

Fate intervenes when Diego's gay, foppish, and British-educated twin brother Ramón de la Vega, a Royal Navy officer having adopted the name "Bunny Wigglesworth", comes home for a visit.

Esteban hatches a plan to lure Zorro to the alcalde's residence with another ball to show off Florinda's expensive new necklace.

Adding to the confusion, Bunny appears in drag, masquerading as "Margarita" Wigglesworth, Diego's cousin from Santa Barbara.

Bunny spills a drink on Florinda, and in the resulting chaos attempts to clean her dress, and makes off with the necklace.

As Bunny leaves to return to the Royal Navy, he tells Diego that Charlotte Taylor-Wilson has confessed her love for Zorro.

The film began life as a screenplay by future screenwriter and teacher David Trottier, titled Zorro, the Comedy Adventure.

He also has surrounded himself with some very attractive and funny actors, particularly Mr. Leibman, Brenda Vaccaro, as the alcalde's sex-hungry wife, and beautiful Lauren Hutton".