Having returned with the wounded Thor from the land of Skartheim, Beta Ray Bill collapses from his own injuries. The two brave warriors are rushed to the House of Healing to recover. Lady Sif finds herself strangely drawn to the alien hero and Lorelei mocks her for it while making no secret of her desire for Thor. The Thunder God is soon visited by his father Odin and offers to exile himself in disgrace over having lost the duel over Mjolnir. Bill is also unhappy with the outcome of the contest, as he feels that only Thor should wield Mjolnir, and besides he did not kill Thor which was a condition of the battle. Odin offers him a gift that carries greater responsibility.…
A cloaked Odin visits the land of the Dwarfs and meets with their leader Eitri. Odin craves a favor that only Eitri can grant; in return, the Dwarf leader, citing their longstanding resentment of the gods, asks that Asgard provide a female warrior to battle their champion. If she wins, Eitri will do the thing Odin asks, but if she loses she will be a slave to the dwarven champion forever….
At the House of Healing, Thor and Beta Ray Bill make peace with one another and see Sif riding away from the city. She has volunteered to fight the dwarf champion for Asgard. Heading toward the dwarf lands though a mountain pass she is attacked by the giant dwarf Throgg but easily beats the huge but clumsy brute. Eitri appears and thanks her for humbling the bully for them and asks her to summon Odin quickly, as there is work to be done….
Elsewhere, Volstagg continues telling the captive warrior Agnar the tale of Balder, his death and his return. In his own realm, Surtur continues beating on his anvil, "Doom!" At a lighthouse in Quebec, the long-imprisoned dragon Fafnir bursts from under the ground, rejoicing in his hard-won freedom….
Odin with Thor, Bill, and Sif travel to the forges of the dwarfs at Nidavellir; there, Sif tries to comfort Bill but he can only reflect on how his monstrous appearance and cyborg nature make him unfit to rejoin the people he sacrificed his humanity to save. The dwarfs forge a mighty hammer of Uru and Odin casts the appropriate spells as it is being made and so Beta Ray Bill seizes it and its power becomes part of him. Odin names the gift Storm Breaker and presents Thor with Mjolnir which is now his alone. Then the All-Father breaks the news that the demons are almost upon Bill’s people and he must hurry if he would save them. Thor and Sif volunteer to accompany their new comrade and fight by his side. The trio mounts Thor’s goat-drawn chariot and they head into space….