Now, there was a man called Grim, who was an outlaw for his ill-deeds, and he thought that as Grettir no longer abode in his hut on the Eagle Lake, he might go there and occupy it. This did not please Hallmund, for Grettir had left him his nets, and he was wont to fish in the lake.

Grim had supplied himself with nets, and he one day caught a hundred char, large red-fleshed fish, delicious eating; so he piled them up outside his hut. Next morning to his great surprise all his char had disappeared. Then he went fishing again, and caught even more fish, and he brought them to land, and heaped them up as before.

Next morning they also had disappeared.

He could not understand it; so he fished again, and had on this occasion extraordinary luck: he must have netted nearly three hundred fish. He brought them home, and put them in the same place as before; but he did not go to sleep this time: he remained within, and watched his store through a peep-hole in the door.

During the night he heard someone who trod heavily coming along the ness, and then he saw a man picking up his fish, and putting them into a basket he had on his back. Grim watched till he had filled the basket, which he now heaved upon his shoulders. Instantly Grim threw open the door, rushed out, and whilst the man was still stooping adjusting his load, he swung up a very sharp axe he held, holding it in both hands, and smote at the man's neck. The axe hit the basket, and that somewhat broke its force, but it glanced aside and sank into the shoulder. Then the man started aside, and set off running with the basket to the south, skirting a lava field that had flowed out of Erick's-jokull, and which now goes by the name of Hallmund's Lava-bed.

Grim ran after him, and saw that he was making for Ball-jokull; but the man, who was of great size and strength, though wounded and losing blood, ran on, and did not stay till he reached a cave in the face of the cliff, above which was the ice, and with long icicles hanging over the front. Into this he entered. There was a fire burning inside, and a young woman sitting by it.

Grim heard her welcome the man, and call him her father, and name him Hallmund. He cast his basket of fish down, and groaned aloud.

Then the girl saw that blood was flowing from him, and she asked him what had happened.

Hallmund told what had befallen him, and said that he was wounded to the death, and that he trusted Grettir would avenge him, for he had no other friend to do so.

After that Hallmund began a lay, and sang the history of his life, the achievements he had wrought, and he sang on till his breath failed, and either he was unable to finish his lay, or Grim could not remember all of it. A good deal, however, of Hallmund's death-song has been retained and is given in the saga.