At the course, Útgarða-Loki calls for a small figure by the name of Hugi to compete with Þjálfi. The first race begins and Þjálfi runs, but Hugi runs to the end of the course and then back again to meet Þjálfi. Útgarða-Loki comments to Þjálfi that he will have to run faster than that, yet notes that he has never seen anyone who has come to his hall run faster than that. Þjálfi and Hugi run a second race. Þjálfi loses by an arrow-shot. Útgarða-Loki comments that Þjálfi has again ran a fine race but that he has no confidence that Þjálfi will be able to win a third. A third race between the two commences and Þjálfi again loses to Hugi. Everyone agrees that the contest between Þjálfi and Hugi has been decided.