At the Goblin Fair in the forest of Tantrevalles, Melancthe is entranced by four beautiful flowers she has bought, which evoke emotions she can't quite identify. Both Shimrod and Tamurello arrive, prompted by the opening of the interworld portal. Tamurello accosts Visbhume, learns Dhrun's secret, and then turns Visbhume into a snake so that he can not reveal the truth to anyone else. Shimrod and Melancthe peruse the booths at the fair. The flower seller, in search of more, has dug up the green pearl, causing the flowers to die, to Melancthe's great disappointment. He offers her the pearl, but Shimrod dissuades her. Tamurello also sees it and is captivated, but before he can take it, a snake darts out from the forest and swallows it. Tamurello instantly chants a spell and turns into a weasel, pursues the snake into its hole and returns triumphantly with the pearl in his teeth. Murgen, disguised as a peasant, quickly seals the weasel and pearl in a glass jar. The weasel dissolves into a green transparency, like a skeleton in aspic.