- Sir Hugo goes to Genoa. The narrator talks about the effect that the family's secrets have had on Daniel.
- When Daniel sees Sir Hugo, any anxiety or anger he might have had about their family secrets goes away; he is just really happy to see Sir Hugo.
- They talk about how Gwendolen's doing.
- Sir Hugo fills Daniel in on the stipulations of Grandcourt's will (Lydia and her kids get the best deal; Gwendolen gets the house at Gadsmere and two thousand pounds a year).
- The narrator tells us that Sir Hugo keeps talking about the Grandcourt situation so he can avoid talking about Daniel's new knowledge of his identity.
- Sir Hugo points out that Daniel has a tendency to be drawn towards people who are having a hard time.
- Sir Hugo also tells Daniel that he has some money that was left to Daniel by his real family. Daniel tells him that he has to go to Mainz to get his grandfather's chest.
- Sir Hugo tells Daniel that he hopes he maintains a Christian life even though he's found out that he's Jewish. Daniel doesn't reply.