Viduveds's handmaidens make
a bed for Bearslayer, and he falls into a deep sleep.
Next morning the people are amazed to see a castle standing on an
island in the middle of the lake. Laimdota tells Burtnieks that
Bearslayer has spent the night in the castle, and the old man
realizes at once that Bearslayer has broken the magic spell and
saved the Sunken Castle. Laimdota and Burtnieks enter the castle and
wake Bearslayer. He claims Laimdota as his bride, and Burtnieks
gives his blessing, saying that the union of the two clans
(Burtnieks and Lielvarde) will save the Latvians.
One evening, later, Laimdota reads to Bearslayer from the ancient
books found in the Sunken Castle. She reads how the ancient Latvians
were led to the Baltic Sea from a land far to the east by
Perkons. With the favour of the gods, they settled in a valley,
built a castle, and established a golden age on Earth.
However, this made the Devil jealous, and he commanded a whirlwind
to suck up a lake and deposit it in the valley. This was done and
the valley, including the castle, was drowned.
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