Thor and Mangog battle briefly, but while Thor is distracted, Mangog slips away.
In her cavern, Karnilla decrees that Balder must die, but the Legion of the Lost, freed from her spell by Balder's bravery, refuses to carry out her order. Dejected, Karnilla teleports them back to Asgard.
Meanwhile, Mangog breaches Asgard's walls by tunneling beneath them.
Balder leads the Asgardians in the realm's defense, but Mangog smashes them easily. Thor arrives and fights Mangog, injuring his arm.
While Loki flees the palace, Thor joins Sif and the Recorder at the Odinsword. As Mangog smashes in and starts drawing the Odinsword, Thor summons a furious storm, which safely awakens Odin from the Odinsleep. Odin breaks the "Odinspell" that created Mangog, dispersing him back into the billion, billion beings of his race that are free to live out their lives in peace.
Odin sheathes the Odinsword, and the Asgardians rejoice in victory.