The Forest company behold Sir Gawaine as a dwarf.
Then Sir Gawaine was filled with a great panic of shame, and he thought of naught but how he might hide himself and his misshapen body from those who were coming. But ere he was able to hide himself, those others had catched sight of him. And they saw how singularly small and deformed and withered was his shape, wherefore they shouted aloud and gave chase to him as though he had been a wild creature. So they pursued him for a long distance and at last they came up with him and surrounded him.
Then, finding that he could not escape, Sir Gawaine leaped down from his horse's back, and flinging himself upon the ground he covered his face with his hands and sought to bury it, as it were, under the earth, so that they who had caught him might not behold the shame of his misshapen countenance. But they dragged him to his feet and they pulled his hands away from his face and beheld it what it was. Then, when they beheld that his face was like the face of an ape they all shouted aloud again and again with laughter.
Then he who was the chief of that party said: "Who are you and how is it that a misshapen dwarf such as you should be riding about here in the forest upon a noble and knightly war-horse?" To the which Sir Gawaine said: "Sir, a great misfortune hath befallen me, and I am not he whom I was a little while ago." So said Sir Gawaine, and when they heard his speech they thought he jested wherefore they laughed again and again with a great uproar of laughter.
They mock at Sir Gawaine.
Then he who had spoken to Sir Gawaine turned to those others and said, "This poor creature is mad," but Sir Gawaine cried out: "Nay, I am not mad, but very miserable and unfortunate. For this morning I was a noble knight of royal lineage and now I am what you behold me."
At this speech they who heard laughed more than ever, for they thought no otherwise than that this poor dwarf was mad and was making sport for them.
Then he who had before spoken to Sir Gawaine spake still again, saying: "Sirrah, you are to know that the pet dwarf of the lady of the castle at which we dwell hath died only a few days ago. Now I will that you shall go with us to her, and that you shall serve her instead of the other creature who is dead. For certes you are the smallest and the most misshapen elf that ever I beheld in all of my life. What think you of this? If you go with us you shall have meat and drink in plenty and you shall have good clothes and lodging and fifty bright silver pennies a year for your hire."
Then Sir Gawaine cried out in a voice of great anguish: "I will not go with you for such a service. For if you did but know who I am and what it is that hath befallen me, you would know that such as I are not they to take such service upon them, nor am I one to make sport for a lady by exhibiting the miserable condition into which I have fallen from an one time high estate."
Thus said Sir Gawaine in a great agony of spirit, but still those that heard him did but laugh. Then seeing that he was of no mind to go with them, they bound his hands and his feet together so that he could not escape and so they constrained him to go whether he would or not.