Þjazi's daughter Skaði arrives armed at Ásgarðr to avenge her father's death; the Æsir offer her a husband chosen by feet alone, and Loki draws forth her laughter with an inventive jest.
Skaði dóttir Þjaza tók hjálm ok brynju ok öll hervápn ok fór til Ásgarðs at hefna föður síns. Æsir buðu henni sætt ok sona hennar fyrst þat at hon skyldi kjósa sér mann af Ásum ok kjósa at fótum einum ok sjá ekki fleira af. Þá sá hon fœtr eins manns ok fagra mjök ok mælti: 'Þenna ky ek, lítt mun ljótt á Baldri.' En þat var Njörðr ór Nóatúnum.
Skaði, Þjazi's daughter, put on helmet and mail-coat and all weapons of war and went to Ásgarðr to avenge her father's death. The Æsir offered her settlement, and first among what they offered was that she might choose a husband from among the Æsir, but choose by feet alone and see nothing more. Then she saw one man's feet, exceedingly beautiful, and said: 'I choose this one; little can be ugly about Baldr.' But it was Njörðr from Nóatún.
Æsir vildu ok at Skaði hlœgði. Þá fór Loki at hann batt um skegg geit einni öðrum enda ok öðrum enda um hreðjar sér, ok var hvárrtveggi látandi. Þá fell Loki í kné Skaða ok þá hlœgði hón. Þat þótti Ásum sæmilegar bætr.
The Æsir also wished Skaði to laugh. Then Loki went forward and tied a rope to a goat's beard at one end and to his own genitals at the other, and each pulled the other and squealed. Then Loki fell into Skaði's lap and she laughed. The Æsir counted this a worthy part of the settlement.