The act ends with Rezia awakening from a dream in which Holger appears to her as her true bridegroom; she is in despair, because that day she is to marry Langulaffer, Prince of the Lebanon.
Three fairies enter and report that the ship that was to take the young couple to Europe had been wrecked on the coast of Tunis, where they were sold as slaves to the court of the Sultan Bobul.
The two are chained together and about to be burned in the public square, but Oberon and Titania appear and free the pair, and Holger once more uses the horn to make his enemies dance until they are helpless.
Then it was forgotten again until it was performed a few times at the Royal Theatre in 1941; Poul Kanneworff directed, Harald Lander did the choreography, and Johan Hye-Knudsen conducted.
Nils Schiørring — the greatest expert on Danish musical history — thought that Holger Danske must be considered "the most significant musicodramatic work that saw the light of day in the country in the 1700s.