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.’

This new quest sounds so alluring to Siegfried, that he immediately sets out upon it, following the road which the Wanderer has previously taken. The latter has gone on to the very foot of the mountain, upon which the flickering flames which surrounded Brunhilde are burning brightly. There he pauses to conjure the goddess Erda to appear and reveal future events. Slowly and reluctantly the Earth goddess arises from her prolonged sleep. Her face is pallid as the newly fallen snow, her head crowned with glittering icicles, and her form enveloped in a great white winding-sheet. In answer to the god's inquiries about the future, she bids him question the Norns and Brunhilde. After a few obscure prophecies he allows her to sink down into her grave once more, for he now knows that one of the Volsung race has won the magic ring, and is even now on his way up the mountain to awaken Brunhilde.

In corroboration of these words, Siegfried appears a few moments after the prophetess or Wala has again sunk into rest. Challenged by Wotan the Wanderer, he declares he is on the way to rouse the sleeping maiden. In answer to a few questions, he rapidly adds that he has slain Mime and the dragon, has tasted its blood, and brandishes aloft the glittering sword which has done him good service and which he has welded himself.

Wotan, wishing to test his courage, and at the same time to fulfil his promise to Brunhilde that none should attempt to pass the flames except the one who feared not even his magic spear, now declares that he has slain his father, Siegmund. Siegfried, the avenger, boldly draws his gleaming sword, which, instead of shattering as once before against the divine spear, cuts it to pieces. In the same instant the Wanderer disappears, amid thunder and lightning. Siegfried, looking about him to find Brunhilde, becomes aware of the flickering flames of a great fire, which rise higher and higher as he rushes joyfully into their very midst, blowing his horn and singing his merry hunting lay.

The flames, which now invade the whole stage, soon flicker and die out, and, as the scene becomes visible once more, Brunhilde is seen fast asleep upon a grassy mound. Siegfried comes, and, after commenting upon the drowsing steed, draws nearer still. Then he perceives the sleeping figure in armour, and bends solicitously over it. Gently he removes the shield and helmet, cuts open the armour, and starts back in surprise when he sees a flood of bright golden hair fall rippling all around the fair form of a sleeping woman:—

‘No man it is!
Hallowed rapture
Thrills through my heart;
Fiery anguish
Enfolds my eyes.
My senses wander
And waver.
Whom shall I summon
Hither to help me?
Mother! Mother!
Be mindful of me.’