Sif and the Warriors Three battle Mephisto. Thor uses Loki's powers to redirect Sif's sword at a fiery dragon, enraging it so that it attacks him, melting the ice that imprisons him.
At the United Nations, Loki declares all humans his slaves. Balder arrives to battle him. Loki attempts to use his magic but doesn't have the power in Thor's form. He only succeeds in publicly revealing his true identity.
In Mephisto's realm, Thor uses Loki's magic to shrink his body, thus enlarging his soul until his goodness terrifies Mephisto and forces him to release the Asgardians. Sif and the Warriors Three return to Asgard while Thor heads to Earth and battles Loki at a construction site near the UN.
Thor tricks Loki into throwing Mjolnir, which sticks fast in the site's excavation rock. When sixty seconds pass, Mjolnir becomes a cane and Thor becomes Don Blake, forcing Thor's power back into his body and switching the two back to normal. Thor reclaims Mjolnir and Loki teleports away.