Reichenhall's forces advance with Duke Heinrich towards Berchtesgaden, involving Mallimes, Runotter, and Jula. Reinforcements from Ingolstadt and Salzburg arrive, balancing the confrontation. Ramsau peasants return home, manipulated by Reichenhall's Chancellor Franzikopus, and Lampert rescues Mallimes.
Lampert forges an alliance with Duke Ludwig, drawing him in with the prospect of war spoils and territorial expansion. As their coalition gains strength, Prince Pienzenhauer is compelled to retreat, allowing Mallimes to strategically capture Hallturm castle and earn a reward from Duke Heinrich. Jula witnesses the devastation, and her father, Runotter, seeks revenge.
Upon returning from Prague to Berchtesgaden, Lampert Someiner finds himself entangled in a conflict when he discovers local peasants grazing their cattle in a restricted area, enraging his father, the prince's administrator. The clash escalates as Lampert tries to warn Jula's father about the impending trouble, setting the stage for a confrontation over long-standing peasant privileges.