Yuri, running ahead in pursuit of Zadny, stumbles into the goblin queen's hall. There he finds the goblin mirror and sees Bogdan in it. Bogdan, under the queen's spell, pulls Yuri into the mirror. Tamas arrives and tries to persuade Bogdan to free Yuri, but Bogdan challenges Tamas and in his rage is accidentally killed. Tamas and Ela confront the goblin queen. The shard returns to the mirror but with their combined magic they seize control of it and banish the goblin queen and her armies. Karoly and Nikolai arrive but the darkness is already receding. Karoly reveals that Azdra'ik used goblin magic to "father" Ytresse with Ylena and that Ela is Azdra'ik's great grand-daughter and Karoly's niece. Tamas, now in control of Azdra'ik, elects to let the goblin lords remain on earth.