Frog-Thor rides his chariot back to Asgard to seek vengeance on Loki. Meanwhile, Loki is conspiring with an unseen ally (it’s Malekith, revealed next issue) to seize the throne of Asgard. Elsewhere, Heimdall and the Warriors Three know they cannot keep up the charade of having Harokin impersonate the missing Thor. Also the children who found the sword of Surtur are all dying, including Volstagg’s Hildy; Volstagg takes Hildy with him on the search for it as this can only be part of Loki’s scheme.
At the Althing, Loki addresses the crowd on his fitness to be king and suddenly seizes the fake Mjolnir from the phony Thor and wields it easily, thus "demonstrating" his nobility. Suddenly, Frog-Thor swoops down and snatches Loki away. The warriors of Asgard set out in pursuit of the strange "demon"….
In Hel, Kurse (see issue #363) is wreaking havoc in search of Malekith his betrayer; Hela is sore annoyed at this. As Frog-Thor is trying to kill Loki, Volstagg discovers the giant sword of Surtur and the evil device. Overcome by its influence, the mighty warrior staggers against a stone pillar and topples it, causing a landslide which destroys the machine, instantly healing Hildy. Since this was what gave Loki the power to effect Thor’s transformation, the spell is suddenly broken and the Thunder God returns to his true form. The warriors of Asgard arrive and as Loki starts to spin another web of lies, Thor casually tosses him the real Mjolnir and it drags him down. At the Althing, Thor is acclaimed king but he refuses the offer, being a man of Asgard and Earth; instead he suggests Balder the Brave for the throne. Hogun is dispatched to the palace of the Norn Queen to bring Balder the news while Loki continues to scheme….