King Atli lures Gunnarr and Högni to him — but first they sink the gold hoard in the Rhine. Högni's heart is cut out alive; Gunnarr dies in the snake-pit playing a harp with his toes. Guðrún takes revenge: she kills her sons by Atli, serves him their blood and hearts, kills him and burns the hall. Later she eggs on Sörli, Hamðir and Erpr to avenge Svanhildr on Jörmunrekkr — but they kill Erpr on the way and are themselves stoned to death.
Atli konungr Buðlason, bróðir Brynhildar, fekk þá Guðrúnar, er Sigurðr hafði átta, ok áttu þau börn. Atli konungr bauð þá til sín Gunnari ok Högna, en þeir fóru at heimboðinu. En áðr þeir fóru heiman, þá fálu þeir gullit Fáfnisarf í Rín, ok hefir þat gull aldri síðan fundizt. En Atli konungr hafði þar lið fyrir ok barðist við þá Gunnar ok Högna, ok urðu þeir handteknir. Lét Atli konungr skera hjarta ór Högna kykum. Var þat hans bani. Gunnari lét hann kasta í ormgarð, en honum var fengin leyniliga harpa, ok sló hann með tánum, því at hendr hans váru bundnar, en svá lék hann hörpuna, svá at allir ormarnir sofnuðu nema sú naða, er renndi at honum ok hjó svá fyrir flagbrjóskat, at hon steypði höfðinu inn í holit, ok hangði hon á lifrinni, þar til er hann dó. Gunnarr ok Högni eru kallaðir Niflungar ok Gjúkungar. Fyrir því er gull kallat Niflunga skattr eða arfr.
King Atli Buðlason, brother of Brynhildr, then married Guðrún, whom Sigurðr had had, and they had children. King Atli then invited Gunnarr and Högni to himself, and they went to the feast. But before they went from home, they hid the gold, Fáfnir's inheritance, in the Rhine, and that gold has never since been found. And King Atli had a force ready there and fought against Gunnarr and Högni, and they were captured. King Atli had the heart cut out of Högni alive. That was his death. Gunnarr he had cast into a snake-pit, but a harp was secretly brought to him, and he played it with his toes, because his hands were bound; and he played the harp so that all the snakes fell asleep except one adder, which glided at him and struck through the cartilage of his breast, so that it thrust its head into the cavity and hung on his liver until he died. Gunnarr and Högni are called Niflungs and Gjúkungs. Therefore gold is called the Niflungs' treasure or inheritance.
Litlu síðar drap Guðrún tvá sonu sína ok lét gera með gulli ok silfri borðker af hausum þeira, ok þá var gert erfi Niflunga. At þeiri veizlu lét Guðrún skenkja Atla konungi með þeim borðkerum mjöð, ok var blandit við blóði sveinanna, en hjörtu þeira lét hon steikja ok fá konungi at eta. En er þat var gert, þá sagði hon honum sjálfum með mörgum ófögrum orðum. Eigi skorti þar áfenginn drykk, svá at flest fólk sofnaði, þar sem sat. Á þeiri nótt gekk hon til konungs, er hann svaf, ok með henni sonr Högna ok vágu at honum. Þat var hans bani. Þá skutu þau eldi í höllina, ok brann þat fólk, er þar var inni.
A little later Guðrún killed her two sons and had table-cups made of their skulls with gold and silver, and then the funeral feast of the Niflungs was held. At that feast Guðrún had mead served to King Atli in those table-cups, and it was mixed with the boys' blood; and their hearts she had roasted and given to the king to eat. And when that was done, she told him himself with many ugly words. There was no lack of strong drink, so that most of the people fell asleep where they sat. That night she went to the king as he slept, and with her Högni's son, and they struck at him. That was his death. Then they set fire to the hall, and the people who were inside were burned.
Eftir þat fór hon til sjávar ok hljóp á sæinn ok vildi týna sér, en hana rak yfir fjörðinn, kom þá á þat land, er átti Jónakr konungr. En er hann sá hana, tók hann hana til sín ok fekk hennar. Áttu þau þrjá sonu, er svá hétu: Sörli, Hamðir, Erpr. Þeir váru allir svartir sem hrafn á hárslit sem Gunnarr ok Högni ok aðrir Niflungar.
After that she went to the sea and leapt into the water and wished to destroy herself, but she was driven across the fjord and came to that land which King Jónakr owned. And when he saw her, he took her to himself and married her. They had three sons, named thus: Sörli, Hamðir, Erpr. They were all black as a raven in the colour of their hair, like Gunnarr and Högni and the other Niflungs.
Þar fæddist upp Svanhildr, dóttir Sigurðar sveins, ok var allra kvinna fegrst. Þat spurði Jörmunrekkr konungr inn ríki. Hann sendi son sinn, Randvé, at biðja hennar sér til handa. En er hann kom til Jónakrs, þá var Svanhildr seld honum í hendr. Skyldi hann færa hana Jörmunrekki konungi. Þá sagði Bikki jarl, at þat var betr fallit, at Randvér ætti Svanhildi, er hann var ungr ok bæði þau, en Jörmunrekkr var gamall. Þetta ráð líkaði þeim vel inum ungum mönnum. Því næst sagði Bikki þetta konungi. Þá lét Jörmunrekkr konungr taka son sinn ok leiða til gálga. Þá tók Randvér hauk sinn ok plokkaði af fjaðrarnar ok bað senda feðr sínum. Þá var hann hengðr. En er Jörmunrekkr konungr sá haukinn, þá kom honum í hug, at svá sem haukrinn var ófleygr ok fjaðralauss, svá var ríki hans ófært, er hann var gamall ok sonlauss. Þá leit Jörmunrekkr konungr Svanhildi, er hann reið ór skógi frá veiðum með hirð sína, hvar hon sat at haddbliki. Þá riðu þeir á hana ok tráðu hana undir hestafótum til bana.
There was fostered Svanhildr, daughter of Sigurðr the boy, and she was fairest of all women. That King Jörmunrekkr the Mighty heard of. He sent his son Randvér to woo her for him. And when he came to Jónakr, Svanhildr was handed over to him; he was to bring her to King Jörmunrekkr. Then Bikki the jarl said that it was more fitting that Randvér should have Svanhildr, since he was young and both of them, while Jörmunrekkr was old. This counsel pleased the young people well. Next Bikki told this to the king. Then King Jörmunrekkr had his son taken and led to the gallows. Then Randvér took his hawk and plucked off its feathers and bade it be sent to his father. Then he was hanged. And when King Jörmunrekkr saw the hawk, it came into his mind that, just as the hawk was flightless and featherless, so was his kingdom defenceless, since he was old and sonless. Then King Jörmunrekkr, as he rode out of the forest from hunting with his retinue, saw Svanhildr where she sat bleaching her hair. Then they rode upon her and trod her to death under the horses' feet.
En er þetta spurði Guðrún, þá eggjaði hon sonu sína til hefndar eftir Svanhildi. En er þeir bjuggust til ferðar, þá fekk hon þeim brynjur ok hjálma svá sterka, at eigi mundi járn á festa. Hon lagði ráð fyrir þá, at þá er þeir kæmi til Jörmunrekks konungs, at þeir skyldu ganga of nótt at honum sofanda. Skyldi Sörli ok Hamðir höggva af honum hendr ok fætr, en Erpr höfuðit.
And when Guðrún heard of this, she egged on her sons to avenge Svanhildr. And when they made ready for the journey, she gave them mail-coats and helms so strong that no iron would stick in them. She laid this counsel before them, that when they came to King Jörmunrekkr, they should go at him by night while he slept; Sörli and Hamðir should hew off his hands and feet, and Erpr his head.
En er þeir kómu á leið, þá spurðu þeir Erp, hver liðsemð þeim myndi at honum, ef þeir hitti Jörmunrekk konung. Hann svarar, at hann myndi veita þeim þvílíkt sem hönd fæti. Þeir segja, at þat var alls ekki, at fótr styddist við hönd. Þeir váru svá reiðir móður sinni, er hon hafði leitt þá út með heiftyrðum, ok þeir vildu gera þat, er henni þætti verst, ok drápu Erp, því at hon unni honum mest.
And when they were on the way, they asked Erpr what help he would give them if they met King Jörmunrekkr. He answers that he would give them such as a hand gives a foot. They say that was nothing at all, that a foot should be supported by a hand. They were so angry with their mother, who had sent them out with words of hate, and they wished to do what she would think worst, and killed Erpr, because she loved him most.
Litlu síðar, er Sörli gekk, skriðnaði hann öðrum fæti, studdi sik með hendinni. Þá mælti hann: "veitti nú höndin fætinum. Betr væri nú, at Erpr lifði."
A little later, as Sörli walked, he slipped with one foot and steadied himself with his hand. Then he said: »Now the hand has aided the foot. It would be better now if Erpr were alive.«
En er þeir kómu til Jörmunrekks konungs of nótt, þar sem hann svaf, ok hjuggu af honum hendr ok fætr, þá vaknaði hann ok kallaði á menn sína, bað þá vaka.
And when they came to King Jörmunrekkr by night, where he slept, and hewed off his hands and feet, he awoke and called on his men, bidding them wake.
Þá mælti Hamðir: "Af myndi nú höfuðit, ef Erpr lifði."
Then Hamðir said: »The head would be off now, if Erpr were alive.«
Þá stóðu upp hirðmenninir ok sóttu þá ok fengu eigi sótt með vápnum. Þá kallaði Jörmunrekkr, at þá skal berja grjóti. Var svá gert. Þar fellu þeir Sörli ok Hamðir. Þá var ok dauð öll ætt ok afkvæmi Gjúka. Því er brynja kölluð klæði eða váðir Hamðis ok Sörla.
Then the retainers stood up and attacked them and could not overcome them with weapons. Then Jörmunrekkr called out that they should stone them. So it was done. There fell Sörli and Hamðir. Then too was dead the whole race and offspring of Gjúki. Therefore a mail-coat is called the clothing or garments of Hamðir and Sörli.