In this chapter, the "grotesque fairy" of the underworld returns to the kingdom of Alaktasa. He greets the king and queen of the kingdom and tells them that the god Ankhselam is merciful and has requested an audience with him. He also informs them that a messenger has just arrived from the island of Illyria, where the "true dragon king festival" is to be held. He tells the king that he has been preparing for the festival for several centuries. He says that he was planning to build a kingdom in the land, but that it was too small to support such a large festival. The king is grateful that he will never have to fight the first master of the land.