Thor frees Princess Python and puts the Golden Bull back on its pedestal. The police arrest Thor but the Circus of Crime escapes.
Meanwhile, Odin brings Loki back from exile yet insists that Thor must be left to his fate. Balder and Sif protest to no avail.
Learning of Thor's plight, Loki comes to Earth. Soon after, Thor is bailed out of jail. He quickly discovers that his benefactor is Loki, who has freed him to destroy him. They battle but Loki, imbued with godly power, cannot feel fatigue or injury. Thor fights valiantly but is finally exhausted. Just as Loki prepares to strike the finishing blow, Balder and Sif arrive to stop him. Odin, furious at their disobedience, fires a punishment bolt towards Earth.