In a stark, oppressive dungeon during the Spanish Inquisition, imprisoned poet and playwright Miguel de Cervantes finds himself at the mercy of his fellow inmates. The prisoners hold a mock trial to seize his possessions, most notably his precious manuscript. To defend himself, Cervantes proposes to enact a play with the assistance of his manservant. He transforms himself into Don Quixote, a delusional but noble-minded knight-errant who embarks on a fantastical quest to revive chivalry and combat the perceived evils of the world. Using imaginative costumes and props, the inmates become characters in the tale, including Quixote’s loyal squire Sancho Panza and a tavern wench named Aldonza who he believes to be his lady love, Dulcinea.

Throughout this narrative-within-a-narrative, themes of idealism, dignity, and the power of imagination unfold. Don Quixote's misguided chivalry and misadventures—such as mistaking windmills for giants—draw out a mix of ridicule and admiration from those around him. His unwavering belief in noble causes contrasts with the harsh realities faced by those in his world. This dichotomy sets up poignant reflections on the nature of reality versus illusion, faith versus doubt, and hope versus despair. As Cervantes enacts Quixote’s valiant yet tragic tale, the line between his fictional world and the grim existence of the dungeon blurs, evoking profound impact on both his character's fate and that of his fellow prisoners.