The Unicorn and Schmendrick continue traveling in an attempt to reach the castle of King Haggard, where the Red Bull resides. When Schmendrick is captured by bandits, the Unicorn comes to his rescue and attracts the attention of Molly Grue, the bandit leader's wife. Together, the three continue their journey and arrive at Hagsgate, a town under Haggard's rule and the first one he had conquered when he claimed his kingdom. A resident of Hagsgate named Drinn informs them of a curse that stated that their town would continue to share in Haggard's fortune until such a time that someone from Hagsgate would bring Haggard's castle down. Drinn goes on to claim that he discovered a baby boy in the town's marketplace one night in winter. He knew that the child was the one the prophecy spoke of, but he left the baby where he found it, not wanting the prophecy to come true. King Haggard found the baby later that evening and adopted it.