Steinvor came back with the priest, who asked Grettir where he thought the two men were who had disappeared. He replied they were, he thought, in the gulf; but if the priest would help him he would find out. The priest agreed. Accordingly, taking a rope with them, they followed the stream down to a waterfall where they saw a cave up under the cliff--a sheer rock the cliff was, nearly fifty fathoms down to the water. The priest's heart misgave him, but Grettir determined to make the attempt; so, driving a peg into the ground, he made the rope fast to it and bade the priest watch it; then he tied a stone to the end and let it sink into the water. When all was ready, he took his short sword and leapt into the water. Disappearing from the priest's view, he dived under the waterfall--and hard work it was, for the whirlpool was strong; but he reached a projecting rock on which he rested awhile. A great cave was under the waterfall, and the river fell over it from the sheer rocks. Grettir climbed into the cave, where he found a great fire flaming, and a giant sitting beside it, huge and horrible to look upon. He smote at the new-comer with a broadsword, but Grettir avoided the blow, and returned such a mighty stroke with his own sword that the giant fell dead at once. The priest on the bank, seeing blood washed down by the swirling waters, and thinking Grettir was killed, fled in alarm and spread the report of his death. Grettir meanwhile stayed in the cave till far on into the night; he found there the bones of two men, which he put in a bag; swimming with them to the rope, he shook it, but as the priest had gone he had to draw himself up by strength of hands. He took the bones to the church, where he left them, returning himself to Sandheaps. When the priest saw Grettir, the latter taxed him with breach of faith in quitting the rope, which charge the priest must needs admit; however, no great harm had resulted, the bones were buried, and the district was freed from hauntings. Grettir received much credit, in so far as he had cleansed the land from these evil wights who had wrought the loss of the men there in the dale.