The next act shows a glen in the gloomy forest close to Fafner’s lair.  Alberich is watching in the darkness, in the vain hope of finding an opportunity of recovering his lost treasure.  Wotan appears, and taunts him with his impotence, telling him meanwhile of Siegfried’s speedy arrival.  Mime and Siegfried soon appear.  The dwarf tries to excite the feeling of fear in Siegfried’s bosom by a blood-curdling description of the terrible dragon, but finding it useless, leaves Siegfried at the mouth of Fafner’s cave and retires into the brake.  Left alone, Siegfried yields to the fascination of the summer woods.  Round him, as he lies beneath a giant linden-tree, the singing of birds and the murmur of the forest blend in a mysterious symphony.  His thoughts fly back to his dead mother and his lonely childhood.  But his reverie is interrupted by the awakening of Fafner, who resents his intrusion.  Siegfried boldly attacks his terrible foe, and soon puts an end to him.  As he draws his sword from the dragon’s heart, a rush of blood wets his hand.  He feels it burn, and involuntarily puts his hand to his lips.  Forthwith, by virtue of the magic power of the blood, he understands the song of the birds, and as he listens he hears the warning voice of one of them in the linden-tree telling him of the Tarnhelm and the ring.  Armed with these he comes forth from the dragon’s cave to find Mime, who has come to offer him a draught from his drinking-horn after his labours.  But the dragon’s blood enables him to read the thoughts in the dwarf’s heart under his blandishing words.  The draught is poisoned, and Mime hopes by slaying Siegfried to gain the Nibelung hoard.  With one blow of his sword Siegfried slays the treacherous dwarf, and, guided by his friendly bird, hastens away to the rock where Bruennhilde lies within the flaming rampart awaiting the hero who shall release her.

The third act represents a wild landscape at the foot of Bruennhilde’s rock.  Wotan once more summons Erda, and bids her prophesy concerning the doom of the gods.  She knows nothing of the future, and Wotan professes himself resigned to hand over his sovereignty to the youthful Siegfried, who shall deliver the world from Alberich’s curse.  Erda sinks once more into her cavern, and Siegfried appears, led by the faithful bird.  Wotan attempts to bar his passage, but Siegfried will brook no interference, and he shivers Wotan’s spear (the emblem of the older rule of the gods) with a blow of his sword.  Gaily singing, he passes up through the fire, and finds Bruennhilde asleep upon her rock.  Love teaches him the fear which he could not learn from Fafner.  He awakens the sleeper, and would clasp her in his arms, but Bruennhilde, who fell asleep a goddess, knows not that she has awaked a woman.  She flies from him, but his passion melts her, and, her godhead slipping from her, she yields to his embrace.