[4][5] The saga, said to have taken place around the introduction of Christianity[6] in Iceland, tells the story of two Icelandic poets, Gunnlaugr Ormstunga and Hrafn Önundarson, and their love of Helga the Fair, granddaughter of Egill Skallagrímsson, which results in a competition leading to a deadly duel of honor.

A hawk then arrives to comfort the swan, foreshadowing the rest of the saga and the love triangle element of the story.

Gunnlaugr accepts Thorstein's gracious invitation to stay with him, and he spends a year there studying law.

Gunnlaugr then decides to travel abroad, but first asks Thorstein for Helga's hand in marriage—a customary practice in that day.

The king has no idea what the proper reward for a poem is, and initially offers a lavish prize before he is counseled to give a more reasonable gift of scarlet clothes, an embroidered tunic, a cloak lined with exquisite furs, and a gold bracelet.

[6] Hrafn then returns to Iceland, where he discusses with Skafti the Lawspeaker the possibility of asking Thorstein for Helga's hand in marriage.

Skafti references the agreement between Gunnlaugr and Thorstein previously made, but Hrafn ignores the objection and says that Gunnlaug is so proud these days that he "won’t take any notice of this or care about it at all".

The story then transitions back to Gunnlaugr and his adventures abroad, where he fulfills his oath to King Æthelred and returns to England.

At the king's insistence, Gunnlaugr stays an extra summer in England, which ultimately causes his original agreement with Thorstein to be void.

With Gunnlaugr returning to Iceland, Helga loses all interest in Hrafn, causing him increasing disdain for the tragic hero.

Gunnlaugr dies a short time later and Helga is married off to another poet named Thorkel, fulfilling the prophecy.

This includes Friedrich de la Motte Fouqué's novel Die Saga von dem Gunnlaugur (1826) and Karl Bleibtreu's novel Gunnlaug Schlangenzunge: Eine Inselmär (1879).

Poetic works inspired by the saga include Walter Savage Landor's Gunlaug (1806), Kristian Arentzen's Gunlög Ormetunge (1852), and Anton Edzardi's Schön-Helga und Gunnlaug (1875).