Young Banks and the Morris dancers discuss whether there should be a witch character in the Morris dance. He is keen that the dance should pass the Carter household with him as the hobby horse, as he wants Katherine to see him play his part. He tells the other Morris dancers that he needs to go off alone for a bit. They initially entreat him to stay, guessing he is in love, and they banter about how slowly time passes when absent from a loved one. After they leave, Young Banks nervously wonders what kind of creature he will have to follow to get to Katherine, as per Elizabeth’s instructions.

Dog arrives and leads him to a spirit in the shape of Katherine, who says in an aside that Young Banks is foolish but virtuous, so they can’t truly corrupt him. Young Banks tries to woo the spirit, adapting a popular ballad, but the spirit leads him into water (a pond or stream). Young Banks emerges shaken but unscathed. Initially angry, he decides he can’t blame a dog for his own choices. He is surprised that Dog then speaks to him, but he nevertheless listens.