Molly, Schmendrick and the Unicorn leave Hagsgate and continue toward Haggard's castle, but on their way they are attacked by the Red Bull. The Unicorn runs, but is unable to escape the bull. In an effort to aid her, Schmendrick unwittingly turns the Unicorn into a human woman. Confused by the change, the Red Bull gives up the pursuit and disappears. The change has disastrous consequences on the Unicorn, who suffers tremendous shock at the sudden feeling of mortality in her human body. Schmendrick tells the unicorn that he is immortal and that he cannot make real magic unless he is mortal, and encourages her to continue her quest. The three continue to Haggard's castle, where Schmendrick introduces the Unicorn as "Lady Amalthea" to throw off Haggard's suspicions. They manage to convince Haggard to allow them to serve him in his court, with the hopes of gathering clues as to the location of the other unicorns. During their stay, Amalthea is romanced by Haggard's adopted son, Prince Lír. Haggard eventually reveals to Amalthea that the unicorns are trapped in the sea for his own benefit, because the unicorns are the only things that make him happy. He then openly accuses Amalthea of coming to his kingdom to save the unicorns and says that he knows who she really is, but Amalthea has seemingly forgotten about her true nature and her desire to save the other unicorns.