After this short exhortation, the viceroy with Don Alfonzo and Bazan advanced to the charge, being opposed on the other side by the licentiate Carvajal. Gonzalo Pizarro had likewise intended to have taken post in the front of battle, but his officers insisted upon his remaining in the rear with eight or ten horsemen. In the first charge the cavalry shivered their lances, after which they continued to fight obstinately with swords, battle-axes and war-clubs or maces. In this part of the battle the cavalry of the viceroy were much galled by a line of musqueteers of the adverse army which plied them in flank. While fighting bravely, the viceroy beat down one of the insurgents named Montalva; but immediately afterwards received so severe a blow on the head with a battle-axe from Ferdinand de Torres, that he fell stunned from his horse. Indeed, both he and his horse had been so excessively fatigued by the difficult march of the preceding night, in which they had neither been able to take food or rest, that they were both easily overthrown. While this was passing with the cavalry of the van, the infantry on both sides advanced to engage, setting up such loud shouts, that one would have believed them much more numerous than they were in reality. Juan de Cabrera was slain at the very commencement of this part of the battle. Sancho de Avilla, advanced boldly at the head of his company to attack the enemy, brandishing a two-handed sword, which he employed with so much strength and address that he soon broke through and defeated half of the company by which he was opposed. But as the soldiers of Pizarro were more numerous in this part of the field than those who followed Avilla, he was surrounded on all sides, and he and most of his men slain. Until the death of the viceroy was known, the battle was very bravely contested by his infantry; but as soon as the knowledge of that unfortunate event had spread through their ranks, they lost heart and relaxed in their efforts, and were soon entirely defeated with considerable slaughter. At this time, the licentiate Carvajal observed Pedro de Puelles about to end the life of the unfortunate viceroy, already insensible and almost dead in consequence of the blow he had received from De Torres and a wound from a musquet ball: Carvajal immediately dismounted and cut off his head, saying, "That his only object in joining the party of Gonzalo was to take vengeance for the death of his brother."

When the victory was completely decided, Gonzalo Pizarro ordered a retreat to be sounded to recal his troops who were engaged in pursuit of the enemy. In this battle, the royalists lost about two hundred men, while only seven were slain on the side of the victors. Pizarro ordered the slain to be buried on the field of battle, and caused the bodies of the viceroy and Sancho de Avilla to be carried to Quito, where they were buried with much solemn pomp, attending himself at the funeral and in mourning20. He soon afterwards ordered ten or twelve of the principal royalists to be hanged, who had taken shelter in the churches of Quito, or had concealed themselves in other places. The oydor Alvarez, Benalcazar governor of Popayan, and Don Alfonzo de Montemayor, were wounded and made prisoners in the battle. Gonzalo intended to have ordered Don Alfonzo to be beheaded; but as he had many friends among the insurgents who interceded for his life, and who assured Gonzalo that he could not possibly recover from his wounds, he was spared. Some time afterwards, Gomez de Alvarado sent notice to Benalcazar that it was intended to administer poison to these three prisoners in the dressings applied to their wounds or in their food; and accordingly he and Don Alfonzo took great precautions to avoid this treachery. As the oydor Alvarez was lodged in the same house with his brother judge Cepeda, he had not in his power to use similar precautions, and died soon after; and every one believed that he was poisoned in some almond soup.

Finding that he could not get secretly rid of Don Alfonzo as he wished, and having no hope of gaining him over to his party, Pizarro resolved to banish him into Chili, above a thousand leagues from Quito, and to send to the same place Rodrigo de Bonilla the treasurer of Quito, and seven or eight other persons of importance, who had always faithfully accompanied the viceroy under every change of fortune. Gonzalo did not put these men to death, as several of his own partizans interceded for their lives; and he did not deem it prudent to keep them near his person, or to permit them to remain in Peru. These exiles were accordingly sent off for Chili, under the charge of Antonio de Ulloa with a party of soldiers. After a march of more than four hundred leagues, mostly on foot, although their wounds were not entirely healed, these prisoners determined to make an effort to recover their liberty, or to lose their lives in the attempt. They accordingly rose against Ulloa and his men with so much courage and resolution that they succeeded in making him and most of his men prisoners. Being near a sea-port, they contrived by great address to gain possession of a vessel, in which were several soldiers and others of the insurgent party whom they overpowered; and leaving all their prisoners, they embarked without either sailors or pilot, and though none of them were in the least acquainted with navigation, they had the good fortune to reach New Spain.

Not satisfied with wreaking his vengeance on those of his enemies who had fallen into his hands in consequence of the victory of Quito, Gonzalo sent Guevara to the city of Parto to apprehend some of his enemies who resided in that place, one of whom only was put to death, and all the rest sent into exile. He pardoned Benalcazar, who promised faithfully to become attached to his party, and sent him back to his government of Popayan, with part of the troops he had brought from thence in the service of the viceroy. He likewise assembled all the fugitive troops of the viceroy, to whom he in the first place urged the many causes of displeasure which he had for their past conduct, yet pardoned them as he knew they had either been misled or forced to act against him, and promised, if they served him faithfully in the sequel, that he would treat them as well as those who had been on his side from the beginning, and would reward them equally when the country was restored to peace. He sent off messengers in every direction, to announce the victory he had obtained, and to encourage his partizans, so that his usurpation seemed established in greater security than ever. Captain Alarcon was sent to Panama, to communicate the intelligence to Hinojosa, with orders to bring back along with him Vela Nunnez and the others who had been made prisoners in that quarter.

At this period, some of Gonzalo's adherents advised him to send his fleet to scour the coasts of Nicaragua and New Spain, on purpose to take or burn all the vessels which might be found in these parts, by which he would effectually secure himself from any attack by sea. By this means, they alleged, when the dispatches and orders from his majesty should arrive in the Tierra Firma, finding no means of sending these into Peru, the ministers of the crown would be under the necessity of granting him favourable terms of accommodation almost equal to his wishes. Pizarro however had great confidence in the fidelity and attachment of Hinojosa and those who were with him, believing that he might trust implicitly to their vigilance, and refused to follow the measures proposed, as tending to evince too much weakness and want of confidence in the goodness of the cause in which he was engaged. He was besides so puffed up by the victory which he had gained over the viceroy, that he believed himself able to resist any power which could now be brought against him.