The curtain lifts on a thick forest. At the back is the entrance to Fafner's cave, the lower part of which is hidden by rising ground in the middle of the stage, which slopes down toward the back. In the darkness the outlines of a figure are dimly discerned. It is the Nibelung Alberich, haunting the domain which hides the treasures of which he was despoiled. From the forest comes a gust of wind. A bluish light gleams from the same direction. Wotan, still in the guise of a Wanderer, enters.
The ensuing scene between Alberich and the Wanderer is, from a dramatic point of view, episodical. Suffice it to say that the fine self-poise of Wotan and the maliciously restless character of Alberich are superbly contrasted. When Wotan has departed the Nibelung slips into a rocky crevice, where he remains hidden when Siegfried and Mime enter. Mime endeavours to awaken dread in Siegfried's heart by describing Fafner's terrible form and powers. But Siegfried's courage is not weakened. On the contrary, with heroic impetuosity, he asks to be at once confronted with Fafner. Mime, well knowing that Fafner will soon awaken and issue from his cave to meet Siegfried in mortal combat, lingers on in the hope that both may fall, until the young Wälsung drives him away.
Now begins a beautiful lyric episode. Siegfried reclines under a linden-tree, and looks up through the branches. The rustling of the trees is heard. Over the tremulous whispers of the orchestra—known from concert programs as the "Waldweben" (forest-weaving)—rises a lovely variant of the Wälsung Motive. Siegfried is asking himself how his mother may have looked, and this variant of the theme which was first heard in "The Valkyr," when Sieglinde told Siegmund that her home was the home of woe, rises like a memory of her image. Serenely the sweet strains of the Love-Life Motive soothe his sad thoughts. Siegfried, once more entranced by forest sounds, listens intently. Birds' voices greet him. A little feathery songster, whose notes mingle with the rustling leaves of the linden-tree, especially charms him.
The forest voices—the humming of insects, the piping of the birds, the amorous quiver of the branches—quicken his half-defined aspirations. Can the little singer explain his longing? He listens, but cannot catch the meaning of the song. Perhaps, if he can imitate it he may understand it. Springing to a stream hard by, he cuts a reed with his sword and quickly fashions a pipe from it. He blows on it, but it sounds shrill. He listens again to the birds. He may not be able to imitate his song on the reed, but on his silver horn he can wind a woodland tune. Putting the horn to his lips he makes the forest ring with its notes:
The notes of the horn have awakened Fafner who now, in the guise of a huge serpent or dragon, crawls toward Siegfried. Perhaps the less said about the combat between Siegfried and Fafner the better. This scene, which seems very spirited in the libretto, is ridiculous on the stage. To make it effective it should be carried out very far back—best of all out of sight—so that the magnificent music will not be marred by the sight of an impossible monster. The music is highly dramatic. The exultant force of the Motive of Siegfried the Fearless, which rings out as Siegfried rushes upon Fafner, the crashing chord as the serpent roars when Siegfried buries the sword in its heart, the rearing, plunging music as the monster rears and plunges with agony—these are some of the most graphic features of the score.
Siegfried raises his fingers to his lips and licks the blood from them. Immediately after the blood has touched his lips he seems to understand the bird, which has again begun its song, while the forest voices once more weave their tremulous melody. The bird tells Siegfried of the ring and helmet and of the other treasures in Fafner's cave, and Siegfried enters it in quest of them. With his disappearance the forest-weaving suddenly changes to the harsh, scolding notes heard in the beginning of the Nibelheim scene in "The Rhinegold." Mime slinks in and timidly looks about him to make sure of Fafner's death. At the same time Alberich issues forth from the crevice in which he was concealed. This scene, in which the two Nibelungs berate each other, is capitally treated, and its humour affords a striking contrast to the preceding scenes.
As Siegfried comes out of the cave and brings the ring and helmet from darkness to the light of day, there are heard the Ring Motive, the Motive of the Rhinedaughters' Shout of Triumph, and the Rhinegold Motive. The forest-weaving again begins, and the birds bid the young Wälsung beware of Mime. The dwarf now approaches Siegfried with repulsive sycophancy. But under a smiling face lurks a plotting heart. Siegfried is enabled through the supernatural gifts with which he has become endowed to fathom the purpose of the dwarf, who unconsciously discloses his scheme to poison Siegfried. The young Wälsung slays Mime, who, as he dies, hears Alberich's mocking laugh. Though the Motive of Siegfried the Fearless predominates at this point, we also hear the Nibelung Motive and the Motive of the Curse—indicating Alberich's evil intent toward Siegfried.
Siegfried again reclines under the linden. His soul is tremulous with an undefined longing. As he gazes in almost painful emotion up to the branches and asks if the bird can tell him where he can find a friend, his being seems stirred by awakening passion.