There was a man named Gisli; he was the son of that Thorsteinn whom Snorri the Godi had caused to be slain. He was a big strong man, very ostentatious in his dress and in his armour, a man with a high opinion of himself and very boastful. He was a mariner, and landed at the Hvita river in the summer after Grettir had spent a winter in the mountains. Thord the son of Kolbeinn rode to his ship and was welcomed by Gisli, who offered him of his wares whatever he cared to have. Thord accepted his offer and they began to have some talk together. Gisli asked: "Is it true what I hear that you are in difficulty how to rid yourself of a forest-man who is doing you much hurt?"

"We have made no attempt yet," said Thord, "because a great many think he is difficult to reach, and have found it so."

"It seems likely that you will have trouble with Bjorn, unless you drive him away. All the worse it is that I must be too far away next winter to give you any help."

"It is better for you to know of him only by hearsay."

"Don't talk to me about Grettir," said Gisli. "I have been in much greater straits in my campaigns with King Knut the Mighty and in the western seas, where I was always considered to have held my own. Only let me come within reach of him and I will trust myself and my armour."

Thord answered that he should not do it for nothing if he killed Grettir: "There is more money on his head than on that of any other outlaw. First there were six marks of silver, this summer Thorir of Gard added three more, and men think that he who wins it will have had enough trouble."

"Everything will be attempted for money," said Gisli: "especially with us traders. But we must keep quiet about what we have been saying, for Grettir will be more on his guard if he hears that you have taken me into your counsels. I intend next winter to be at Olduhrygg; is there any hiding-place of his on my way there? He will not be prepared for this, and I shall not take many men with me to attack him."

Thord approved of his proposal. He rode home soon after and kept very quiet about it. And now was proved what has often been said, that: Off in the woods is a listener nigh. Men who were friends of Bjorn in Hitardal overheard their conversation and reported it accurately to him. Bjorn told Grettir of it when they met, and said now he should see how to encounter him. "It would be no bad joke," he said, "if you were to injure him in some way without killing him if you can."

Grettir grinned but said little. Towards the time of gathering in the cattle Grettir went down to Flysjuhverfi to get some sheep and got four wethers. The bondis heard of his having come and went after him. They came up just at about the moment when he reached the foot of his mountain and wanted to drive the sheep away from him. But they would not attack him with weapons. There were six of them and they stood across his path to bar his way. He was concerned about his sheep, got angry, seized three of them and threw them down the hill so that they lay senseless. The others when they saw it went at him, but rather halfheartedly. Grettir took the sheep, fastened them together by the horns, threw two over each shoulder and carried them off. Then he went up into his den. The bondis turned back feeling they had had the worst of it, and were more discontented with their lot than ever.

Gisli stayed with his ship that autumn until she was ready to be hauled up. Several things happened to delay him, so that he was late in getting away and rode off very little before the winter nights. Then he rode North and stayed at Hraun on the south bank of the Hitara. Next morning before he rode out he said to his servants: "Now we will ride in red clothes and let the forest-man see that we are not like the other travellers who beat about here every day."

There were three of them and they did as he bade. When they had crossed the river he said: "Here I am told dwells the forest-man, up in that peak; but the way is not an easy one. Would it not please him to come to us and see our array?" They said this was always his habit.

That morning Grettir had got up early. The weather was cold, it was freezing and some snow had fallen, but very little. He saw three men riding from the South across the Hitara, and the light shone from their apparel and from their enamelled shields. It occurred to Grettir who it might be, and he thought he would relieve them of some of their accoutrements. He was very curious to meet a man who went about so ostentatiously. So he took his weapons and hurried down the hillside. Gisli when he heard the clattering of the stones said: "A man, rather tall, is coming down the hill and wants to meet us. Let us act boldly and we shall have good sport." His men said that this fellow had great confidence in himself to run into their hands; but that he who asked should have. Then they got off their horses. Grettir came up to them and laid hold of a bag of clothes which Gisli had behind him on his saddle, saying:

"I must have this; I often stoop to little things."

Gisli said: "You shall not; do not you know with whom you have to do?"

Grettir said: "No; that is not so clear to me. Nor do I make much difference between one man and another since I claim so little."

"May be it seems little to you," said Gisli; "but I would sooner part with thirty hundred ells of wadmal. It seems that extortion is your way. Go for him, boys! Let us see what he can do."

They obeyed. Grettir fell back a little and reached a stone which is still standing by the side of the way and is called Grettishaf, where he stood at bay. Gisli urged on his men, and Grettir saw that he was not quite so valiant as he pretended to be, for he kept well behind them. Grettir got tired of being hemmed in, so he made a lunge with his sword and killed one of Gisli's men, sprang from his stone and assailed them so vigorously that Gisli fell back all along the foot of the hill. Then his other man was killed.

Grettir said: "One would scarcely see that you have achieved much in the world abroad, and you have shamefully forsaken your comrades."

Gisli answered: "The fire is hottest to him who is in it; it is ill dealing with men from Hel."

They had exchanged few more blows when Gisli threw away his arms and bolted right away along the foot of the mountain. Grettir gave him time to throw away whatever he liked, and at every opportunity he threw off something more of his clothes. Grettir never followed him so closely that there was not some distance between them. He ran right away from the mountains, across Kaldardal, round Aslaug's Cliff, above Kolbeinsstad and out to Borgarhraun.

By that time he had nothing left on him but his shirt, and was terribly exhausted. Grettir still followed, keeping now within reach of him. He pulled off a great branch. Gisli did not stop till he reached Haffjardara river, which was all swollen and difficult to ford. Gisli was going right out into the river when Grettir pressed forward and seized him and showed him the difference in their strength.

Grettir got him down, sat on the top of him and asked: "Are you the Gisli who wanted to meet Grettir?"

"I have found him now," he answered; "but I know not how I shall part with him. Keep what you have taken and let me go free."

Grettir said: "You will not understand what I am going to tell you, so I must give you something to remember it by." Then he pulled up Gisli's shirt over his head and let the rod play on both sides of his back. Gisli struggled to get away, but Grettir gave him a sound whipping and then let him go. Gisli thought that he would sooner not learn anything from Grettir than have another such flogging, nor did he do anything more to earn it. Directly he got his feet under him again he ran off to a large pool and swam across the river. In the evening he reached the settlement called Hrossholt, very exhausted. There he lay for a week, his body covered with blisters, and afterwards went on to his own place.

Grettir turned back, gathered up all the things which Gisli had thrown away and took them home. Gisli never got them back again; many thought he had only got what he deserved for his noisy boasting. Grettir made a verse about their encounter:

In the spring after this Gisli prepared to go on board his ship and forbade in the strongest terms anything which belonged to him being carried South by the way of the mountains; for he said that the Fiend himself was there. Gisli when he went South to join his ship kept all the way along the coast and he never met Grettir again. Nobody considered him worth thinking about, nor do we hear any more of him in this saga. Grettir's relations with Thord the son of Kolbeinn became worse than ever, and Thord tried every means to get Grettir driven away or killed.