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Don Errico Medigua is the viceroy of Spanish-occupied 16th-century Peru and fears assassination by rebels. After he secretly has the rebel leader El Capitan killed, he disguises himself as El Capitan. Estrelda, the daughter of the former viceroy, Cazarro, impressed by tales of El Capitan's daring, falls in love with the disguised Medigua, who is already married. Meanwhile, the rebels capture the Lord Chamberlain, Pozzo, mistaking him for the viceroy. Hearing that her husband has been captured, Medigua's wife Marganza and daughter Isabel (who is being wooed by the handsome Verrada) go in search of Medigua.
Medigua, still disguised as El Capitan, leads the hapless rebels against the Spaniards, taking them in circles until they are too tired to fight. The Spaniards win, the mistaken identities are revealed, the love stories are untangled after Medigua explains to his wife the flirtation with Estrelda, and the story ends happily.
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