The narrative opens with Tom Canty, the pauper living the life of a prince, experiencing the grandeur of a royal river journey. As the royal boat glides down the River Thames, Tom sits upon a throne, viewing the street festival from a perspective he never imagined. To Tom, the spectacle is breathtaking, a stark contrast to his past, yet he observes that his companions, Elizabeth and Jane, are indifferent to the "lights on shore or the people singing," suggesting their familiarity with such luxuries. Upon arriving at the hall, the scene is one of orchestrated pageantry: "trumpets played" and "everyone bowed." For a brief moment, the sheer spectacle of the dance and the "colors" twirling around him allow Tom to find a momentary respite from his internal turmoil—the crushing fear of being "trapped as the prince" and the looming threat of discovery that would lead him to "jail."
While Tom enjoys the "delights of the party," the real Prince of England, Edward, remains locked outside, suffering the indignity of being treated like a commoner. Despite his desperate pleas—"I am the true Prince of Wales"—he is dismissed as a "fraud" by the crowd. His frustration is palpable as he endures the mockery of the bystanders, wondering if he will ever grow accustomed to the "laughter" that has plagued him for the past two days. In this moment of vulnerability, he encounters Miles Hendon, a man whose "kind face" and "well-dressed" yet tattered appearance provide a glimmer of hope. Miles offers a chivalrous gesture, bowing and addressing the boy as "Prince Edward," marking the beginning of a crucial alliance.
The tension escalates when the crowd turns hostile, mocking the duo as "another prince in disguise" and suggesting they be thrown "into the pond." The situation turns dangerous until Miles Hendon displays his sword to protect the boy, asserting, "He's none of your concern." However, the chaos is interrupted by the arrival of the "king's messenger." In the ensuing confusion, Miles whisked Edward away to safety, inadvertently causing the Prince to miss a piece of news of "great interest"—the official announcement of his own father's death.
The climax of the chapter occurs inside the hall, where the atmosphere shifts from festive to somber. The messenger delivers the grave news: "The king is dead." The room falls into a heavy silence, followed by the collective cry of "Long live the king!" directed at Tom. The irony is profound; the crowd cheers for the "future king," while the boy on the throne feels "miserable." Tom’s internal crisis peaks when he whispers to Hertford, "Is it true that I will soon be crowned king?" Hertford’s confirmation—that Tom will be "named king of all of England"—serves as the ultimate realization of Tom’s predicament. He is no longer just a pauper pretending to be a prince; he is now the figurehead of a nation, trapped by duty, feeling entirely overwhelmed by the prospect of the crown he never sought.