When Mime and Siegfried are together again, Mime tries to frighten Siegfried so that he knows what fear is. He tells him all about the huge dragon in the cave. "Does that not frighten you?" he asks him. "Not a bit" answers Siegfried, who likes the thought of fighting a dragon. Siegfried works at the anvil and starts to make the sword. Mime is thinking of how he will trick Siegfried after the dragon has been killed, so that he can get the sword and kill Siegfried. At last Siegfried manages to make the mighty sword. He calls out its name: "Nothung"! Then he crashes the sword down on the anvil which splits into two pieces.