When the wife of Golden Walter betrays him for another man, he leaves home on a trading voyage to avoid the necessity of a feud with her family.

He has a vision of three figures: a stately Lady, her Maid, who wears an iron ring on her anklet, and a Dwarf in a yellow hood.

The Dwarf reveals that Walter has strayed into the land of the Lady, who keeps a grand house at the heart of the wood.

Walter agrees and seeks the house of the Lady and swears fealty to her, citing his vision as his reason for entering her lands.

Soon after, the King's Son falls out of the Lady's favour when she discovers that he has attempted to seduce the Maid, who refused him.

Stripped naked, his body is inspected and he is invited to don either beautiful robes or the armour of battle.

She regrets deceiving the Bear-People, and teaches them agriculture to avail the effects of longstanding drought in their land.

Walter abolishes Stark-Wall's prisons, establishes support for the hungry and poor, defeats foes in battle, and leaves a long line of heirs.

He also recaptured much of the poetry; and if the reader will make the small effort necessary to accommodate himself to the rhythm of the style, he will find both it and the story rewarding.