Paddington breaks out of prison with Knuckles and some other inmates. Knuckles says he will help Paddington prove he is innocent but then changes his mind and plans to escape abroad. Paddington finds a phone and calls the Browns, who plan to catch Buchanan at Paddington Station on a steam train carrying the treasure. Paddington makes it onto the train with Buchanan while the Browns are on the next train and try to catch up from behind.
Buchanan traps Paddington in a train carriage and switches the track so it detaches and crashes in a river - Knuckles and the prisoners show up to save Paddington from drowning as they decided to stay and help him after all. Henry stops Buchanan just before he gets the treasure and he is arrested.
Paddington is found innocent by the court and wakes up after his illness to find it's Aunt Lucy's birthday, and that his family and friends have brought her to London to see it for herself. Knuckles is pardoned while Buchanan is sent to prison, where he finally finds his audience by organising the prisoners to stage musicals.
Mr. Curry: We don't want him here!
Henry Brown: Of course you don't. You never have! As soon as you set eyes on that bear you made up your mind about him. Well Paddington's not like that. He looks for the good in all of us and somehow, he finds it! It's why he makes friends wherever he goes. And it's why Windsor Gardens is a happier place whenever he's around. He wouldn't hesitate if any of us needed help! So stand aside, Mr. Curry. 'Cause we're coming through.
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