As Thor continues his losing battle against the deadly Destroyer, unaware that the machine is animated by the spirit of his best friend Balder, Sif and Karnilla are helpless while Loki gloats (too soon) over his victory. Sif insists that Karnilla can’t understand love so the Norn Queen vanishes in a huff…and appears in Loki’s quarters to take him on face-to-face….
In the catacombs beneath the palace, the villains Kroda the Duelist, Magrat the Schemer, and Snaykar the Skulker arrive at the hidden chamber where the kidnapped Odin lies sleeping. They intend to either present themselves as his rescuers or kill him in his sleep, depending on whether he is awake or not. The Warriors Three who have followed the bad guy trio suddenly attack, easily routing their foes. They then destroy the troll-forged barricade and enter….
As Thor tries valiantly to dodge the Destroyer by swimming away under the surface of a mighty pool (which his powerful enemy upends), Loki and Karnilla are locked in a magical duel over Balder’s spirit. The Norn Queen vanishes, taking the comatose Balder with her, and returns to the scene of battle, hoping to restore her lover’s spirit to its rightful body. Loki has followed her, however, and strikes her down. The Destroyer sees this and, with the faint memories of Balder, turns on Loki who is forced to transfer the warrior’s spirit in order to save himself. The God of Evil then races to make his own spirit animate the deadly device but Thor beats him to it. The Thor-animated Destroyer prepares to disintegrate Loki but the restored Odin arrives to shut down the Destroyer and return Thor’s spirit to his body. Thor and all Asgard welcome the return of their beloved liege.