Bajirao meets Kam Baksh in the guise of a humorist. Kamruddin tells Tararani that Dhanaji has allowed Shahu to come to Satara. Radhabai and Rajasbai plan to escape from Tararani's captivity by digging through a wall. Bajirao entertains Kam Baksh by his wit. Tararani stops Radhabai and Rajasbai from escaping her mansion.