When Corrigan had departed, Myles made his way to the Colleen Bawn's cottage, where he found the inmates somewhat upset; for Father Tom, jealous of the good name of the pretty maiden over whom he exercised guardianship, had been pressing Eily to persuade Hardress Cregan to acknowledge their marriage, declaring it to be unjust to her that he should continue to visit her by stealth. Nor was the good father satisfied when Eily declared that Hardress doubtless felt ashamed to introduce a peasant wife to his fine relations, and that he might even leave her altogether should he be pressed to do so; but when he again sternly insisted upon her securing her rights, she agreed to do so.

On the entrance of Myles, however, gaiety once more reigned in the cottage; for the merry outlaw insisted on brewing a big bowl of punch, to the accompaniment of a lively Irish song.

As the song came to an end, Hardress Cregan appeared; and Eily soon noticed that he was anxious and upset, since her strong Irish brogue irritated him more than usual, so that he scolded her for mispronouncing her words. Presently she learnt from him of the difficulty he was in with regard to the mortgage on his estate; and he eagerly desired her to give up her marriage certificate, that he might be free to make the union his mother desired, declaring that otherwise he would visit her no more.

Eily's love for Hardress was so great that she was even willing to make the monstrous sacrifice he required, in order to save him from ruin; but Myles-na-Coppaleen indignantly interposed to prevent such a selfish design from being carried out, whilst Father Tom sternly compelled Hardress to give into his own keeping the certificate which the trusting Eily had yielded up.

Young Cregan, angry at being thus foiled, and equally ashamed at the base part he had felt compelled to play for the sake of his mother's welfare, left the cottage in a passion, declaring that he would never visit it again, and bidding the Colleen Bawn farewell for ever; and poor Eily, overcome by this distressing scene, fell senseless to the floor, heedless of the words of comfort uttered by her two faithful friends.

Hardress, though soon filled with deep remorse for his recent heartless conduct, now began to pay his addresses to Anne Chute with such earnestness and success that their engagement and early marriage was presently announced; but the young man's thoughts constantly reverted to the deserted Eily, whom he still loved dearly, and whose gentle image he could not drive from his mind.

Soon, his troubled thoughts and embarrassing situation became known to Danny Mann; and the wily boatman, whose devotion and love for young Cregan was intense, suggested a desperate means for securing his freedom. He hinted that he would himself willingly resort to violence in order to remove the Colleen Bawn from his master's path; and even when Hardress refused with horror and indignation to consider such a scheme, he still declared that he was ready to do the deed at any time, if Cregan would send him his glove as a token that he desired Eily O'Connor to vanish.

Shortly after this, Mrs. Cregan received another visit from Corrigan, the agent, who, still doubting whether Hardress would ever marry the heiress, began to press his hateful alternative upon her; but his undesired attempts at love-making were summarily stopped by the entrance of young Cregan, who, grasping the situation at a glance, forcibly ejected the agent, pouring fiery words of indignation upon him, to which Corrigan replied with sulky threats of an early triumph.

It happened that Danny Mann, the boatman, who was waiting without, overheard the whole of this conversation; and after cautiously watching Corrigan and Hardress to a safe distance, he came forward to speak with Mrs. Cregan, declaring that the only way to make a break between her son and his sweetheart, the Colleen Bawn, was to pack the girl off to America, slyly undertaking to arrange the matter himself with Eily, who he knew would consent, if he could show to her Hardress's glove as a token that it was his desire that she should go.