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One evening very late when Grettir was preparing to return home, he saw a great fire shoot up on the headland below Audun's place, and asked what new thing that might be. Audun said there was no pressing need for him to know. "If they saw such a thing in our country," said Grettir, "they would say the fire came from some treasure."

Audun struck the ball over Grettir's head, so that he could not catch it, and it bounded far away along the ice; Grettir brought it back, and in a rage threw it at Audun's forehead; Audun struck at him with his bat, but Grettir closed with him and wrestled, for a long time holding his own; but Audun was a man of full strength, and at last prevailed.

Grettir put on all his finery and rode with the coloured and richly ornamented saddle which Thorfinn had given him, on a splendid horse and in his best armour to Audun's place, where he arrived early in the day and knocked at the door. Few of the men were in the house, and to Grettir's question whether Audun was at home, they replied that he had gone to the hill-dairy to bring home some produce.

Now one night very late, as Grettir made ready to go home, he saw a great fire burst out on a ness to the north of Audun's farm. Grettir asked what new thing this might be. Audun said that he need be in no haste to know that. "It would be said," quoth Grettir, "if that were seen in our land, that the flame burned above hid treasure."