The Nonexistent Knight opens in Paris during the reign of Charlemagne, who is inspecting his paladins. The paladins are on horses, and Charlemagne, on his own large horse, goes from paladin to paladin, and they tell him their names and credentials. Charlemagne approaches a paladin in ornate white armor, who identifies himself as Agilulf. When Charlemagne asks Agilulf to raise his visor, Agilulf responds that he has not yet done so because he does not exist. At Charlemagne’s insistence, Agilulf raises his visor, and the armor is empty. Agilulf explains that he does his duty as a paladin solely by willpower and faith in Charlemagne’s holy cause. 

Afterward, the paladins are dismissed, and they dismount to form groups, talking and boasting with one another. Agilulf stands apart from these groups, listening to their conversations but never entering into any particular group. As night falls, he goes to the stables, where he finds that the horses are not being tended to properly. After taking stock of the camp, Agilulf reprimands the stableboys and goes to each paladin, pointing out where they have been negligent, directing them on how to improve, and giving them commands. As the chapter ends, all of the paladins agree that Agilulf is a model paladin, but they dislike him.