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"Let us celebrate with sparkling Burgundy," says a beaming Tartar (Dick Curtis) after The Phantom (Tom Tyler) has killed Brutus the gorilla in a fair fight. Diana Palmer (Jeanne Bates) is free to leave and the jungle man obtains the final piece of the puzzle that may lead to the lost city of Zoloz. Meanwhile, in an effort to reach Zoloz ahead of the expedition, the greedy Byron Anderson (Guy Kingsford) stumbles right into Dr. Bremmer (Francis McDonald) and his cutthroat saboteurs who are planning to use the archeological site as a secret airstrip. The lost city becomes positively crowded with the arrival of The Phantom and Devil (Ace the Wonder Dog) but in the ensuing battle, the former is overpowered and forced into a hidden cistern quickly filling with water.