During the autumn Grettir returned to the South and did not stop till he came to his kinsman Thorsteinn Kuggason in Ljarskogar, who welcomed him. He accepted Thorsteinn's invitation to stay the winter with him. Thorsteinn was a man who worked very hard; he was a smith, and kept a number of men working for him. Grettir was not one for hard work, so that their dispositions did not agree very well. Thorsteinn had had a church built on his lands, with a bridge from his house, made with much ingenuity. Outside the bridge, on the beam which supported it, rings were fastened and bells, which could be heard from Skarfsstadir half a sea-mile distant when any one walked over the bridge. The building of the bridge had cost Thorsteinn, who was a great worker in iron, much labour. Grettir was a first-rate hand at forging the iron, but was not often inclined to work at it. He was very quiet during the winter so that there is not much to relate.

The men of Hrutafjord heard that Grettir was with Thorsteinn, and gathered their forces in the spring. Thorsteinn then told Grettir that he must find some other hiding-place for himself, since he would not work. Men who did nothing did not suit him.

"Where do you mean me to go to?" asked Grettir.

Thorsteinn told him to go South to his kinsmen, but to return to him if he found them of no use.

Grettir did so. He went to Borgarfjord in the South to visit Grim the son of Thorhall, and stayed with him till the Thing was over. Grim sent him on to Skapti the Lawman at Hjalli. He went South over the lower heaths and did not stop before he reached Tunga, where he went to Thorhall, the son of Asgrim the son of Ellidagrim, and paid few visits to the farms around. Thorhall knew of Grettir through the relations which had been between their ancestors; indeed Grettir's name was well known throughout the country because of his exploits. Thorhall was a wise man and treated Grettir well, but did not want to keep him there for very long.