Due to his good behavior Hotzenplotz is released from prison and decides to give up his job as a professional thief. He visits Kasperl's and Seppel's grandmother to apologize for his previous attacks. However, Grandmother does not trust him and locks him up in her closet. Alois Dimpfelmoser, who received a further promotion as a chief inspector in the meantime, appears and releases Hotzenplotz, as there is no proof of any attack. Furthermore, Hotzenplotz confirms his earlier release from prison by an official letter. However, Dimpfelmoser wants to keep an eye on Hotzenplotz and visits the widow Schlotterbeck together with Kasperl and Seppel to spy on Hotzenplotz with the help of her crystal ball. They observe that he disposes his gunpowder and his weapons from his den of robbers. Unfortunately, they cannot follow the complete activity, as the night begins and the crystal ball turns into darkness. Dimpfelmoser asks the widow Schlotterbeck to observe Hotzenplotz as soon as the sun rises. Kasperl and Seppel go out to catch Hotzenplotz as they assume that he intends new crimes. On their way to the den of robbers they build a trap by binding a sand bag on a tree and stretching the end of the rope over the ground, so that the sandbag falls down, when someone touches the rope on the ground. When Seppel tries their trap, it works perfectly and the sandbag falls on his head, so that he now lies unconscious on the ground. Fortunately, Hotzenplotz arrives and helps Seppel to wake up with his snuff. Finally, Hotzenplotz can convince Kasperl and Seppel that he wants to be an honest man by setting on fire all his complete gunpowder. After the explosion of the gunpowder, they bury all his weapons in the moor. Afterwards, the three sit together around a camp fire, enjoying a robber meal which Hotzenplotz prepared and talk about Hotzenplotz's future. Hotzenplotz does not know what he wants to do, because he did not learn anything besides robbery. Kasperl and Seppel start their way home, when the night begins. Hotzenplotz accompanies them until the city outskirt. There, they find a “Wanted” poster of Hotzenplotz with a current date. Hotzenplotz is accused to have damaged a window from the widow Schlotterbeck's house and to have stolen the crystal ball from her.