Sir Tristram divides the treasure amongst the captives.

All this treasure Sir Tristram had them bring forth into the light of day, and he divided it into seven equal parcels. Then he said to those sad, sorrowful captives: "Look! See! all this shall be yours for to comfort ye! Take each of you one parcel and depart hence in joy!" Then all they were greatly astonished at Sir Tristram's generosity, and they said: "Lord, how is this? Do you not then take any of this treasure for yourself?"

To them Sir Tristram made reply: "Nay, why should I take it? I am not sad, nor sick, nor troubled at heart as you poor captives are. All this I have taken for to comfort you, and not for to satisfy my own covetousness. So let each take his share of it and see that ye all use it in comfort and peace and for the advantage of other men and women who are in trouble as ye have been. For, as hitherto this treasure hath been used for evil purpose, so shall it be henceforth that it shall be used to good purpose."

So there was great rejoicing amongst all those poor people who had been so sad and sorrowful before.

Sir Tristram appoints Sir Segwarides governor of the castle.

Now, after all this had been settled, Sir Tristram cast about how he might put that land under good government upon behalf of the Lady Loise. To this intent he chose from amongst those captives whom he had liberated a certain very worthy honorable knight of Cornwall hight Sir Segwarides. Him Sir Tristram appointed to be governor of that island, giving him liberty to rule it as he chose saving only that he should do homage to the Lady Loise as lady paramount. And Sir Tristram ordained that Sir Segwarides should pay tribute to that lady every year such an amount as should be justly determined upon betwixt them. For Sir Tristram wist that some strong worthy knight should rule that island, or else, from its position, it might again some time fall from the Lady Loise's possession into the hands of such an evil and malignant overlord as Sir Nabon had been.

So it was done as Sir Tristram had ordained. And it may here be said that Sir Segwarides ruled that land very justly and that he and the Lady Loise became dear friends, so that at the end of three years from that time he and she were made husband and wife.

Now Sir Tristram remained in that island several days, with intent to see to it that the power of Sir Segwarides should be established. And he made all the people of that land come before Sir Segwarides for to pledge obedience to him.

Amongst these came Sir Lamorack in the guise of a swineherd, and Sir Tristram knew him not, because that he was clad in rags and in the skins of animals and because that his beard and his hair were uncut and unkempt, and hung down very shaggy upon his breast. But Sir Lamorack knew Sir Tristram yet would not acknowledge him, being ashamed that Sir Tristram should discover him in such a guise and so ragged and forlorn as he then was. So he kept his eyes from Sir Tristram, and Sir Tristram passed him by and knew him not.