This challenge immediately brings forth the frightful dragon.  To Siegfried’s surprise he can still talk like a man.  After a few of the usual amenities, the fight begins.  Mindful of his boast, Siegfried skilfully parries every blow, evades the fiery breath, lashing tail, and dangerous claws, and, biding his time, thrusts his sword up to the very hilt in the giant’s heart.

With his dying breath, the monster tells the youth of the curse which accompanies his hoard, and, rolling over, dies in terrible convulsions.  The young hero, seeing the monster is dead, withdraws his sword from the wound; but as he does so a drop of the fiery blood falls upon his naked hand.  The intolerable smarting sensation it produces causes him to put it to his lips to allay the pain.  No sooner has he done so than he suddenly becomes aware that a miracle has happened, for he can understand the songs of all the forest birds.

Listening wonderingly, Siegfried soon hears a bird overhead warning him to possess himself of the tarn-helmet and magic ring, and proclaiming that the treasure of the Nibelungs is now his own.  He immediately thanks the bird for its advice, and vanishes into the gaping Neidhole in search of the promised treasures:—­

   ’Hi!  Siegfried shall have now
    The Nibelungs’ hoard,
    For here in the hole
    It awaits his hand! 
    Let him not turn from the tarn-helm,
    It leads to tasks of delight;
    But finds he a ring for his finger,
    The world he will rule with his will.’

Alberich and Mime, who have been trembling with fear as long as the conflict raged, now timidly venture out of their respective hiding places.  Then only they become aware of each other’s intention to hasten into the cave and appropriate the treasure, and begin a violent quarrel.  It is brought to a speedy close, however, by the reappearance of Siegfried wearing the glittering helmet, armour, and magic ring.

The mere appearance of this martial young figure causes both dwarfs to slink back to their hiding places, while the birds resume their song.  They warn Siegfried to distrust Mime, who is even then approaching with the poisonous draught.  This the dwarf urges upon him with such persistency that Siegfried, disgusted with his fawning hypocrisy, finally draws his sword and kills him with one blow:—­

   ’Taste of my sword,
    Sickening talker! 
    Meed for hate
    Nothung makes;
    Work for which he was mended.’

Then, while Alberich is laughing in malicious glee over the downfall of his rival, Siegfried flings his body into the Neidhole, and rolls the dragon’s carcass in front of the opening to protect the gold.  He next pauses again to listen to the bird in the lime tree, which sings of a lovely maiden surrounded by flames, who can be won as bride only by the man who knows no fear:—­

   ’Ha!  Siegfried has slain
    The slanderous dwarf. 
    O, would that the fairest
    Wife he might find! 
    On lofty heights she sleeps,
    A fire embraces her hall;
    If he strides through the blaze,
    And wakens the bride,
    Brunhilde he wins to wife.’