Karnilla the Norn Queen waits anxiously for her beloved Balder to return from his quest into Hel with Thor (THOR #360-362). One day she sees him riding back to the castle and rushes to embrace him; she is suddenly trapped in magical bonds—this Balder was a shape-shifter, employed by the Frost Giants to gain entry now that they know Odin is gone from Asgard. Magic dust cast by their king Utgard-Loki turns all the inhabitants of Karnilla’s kingdom to stone. Karnilla’s hair is cut and she is shackled and gagged. Utgard-Loki finds the Sword of Frey and presents it to his warrior Hagen. The giants then return to their stronghold with their loot and the captive queen….
Soon the real Balder, accompanied by Agnar, returns to Nornkeep to discover everyone has been petrified. Learning from the birds what has happened, the two heroes ride to the rescue, guided by Whiteface the eagle. The eagle leads them over chasms and through mountains which are merely illusions, though the nervous Agnar loses his horse on the way….
Meanwhile at the Frost Giant stronghold, Karnilla, set to work scrubbing floors, is transformed by Utgard-Loki’s magic into a bird and placed in a cage. They then plot the overthrow of Asgard….
The heroes are approached by Rattusk, the demon guard whom Balder interceded for last issue, and he offers to show them the hidden entrance to the giant fortress. Balder goes off to check it out. He soon returns but the birds flee from him, tipping off Agnar that this is an impostor. Agnar kills the shapeshifter and heads along. Soon he comes upon a dead man in the path—a corpse wearing Balder’s armor….