Scene 1.- The Palace Square. At their inn John and his companion watch the lights go out, until at last, but one - that of the Princess - remains. John feels a tense anxiety as to the event of the morrow. The Companion quietly cheers him - 'Look in my eyes. All that I seek, all that I find is yours tomorrow - now to sleep'. John goes in. Then comes to her balcony the Princess. Her heart is moved, and she thinks her thoughts aloud - each mysteriously echoed back to her by the Companion, who, hidden from her, stands beneath. She makes gestures of incantation and summons a hurricane, a mist comes down, and lightning flashes; in a great gust of wind she rides away into the air. But, unseen, the Travelling Companion follows behind her.
Scene 2.- The Wizard's Cave. A procession of goblins, wild dances. The Princess enters and is welcomed. (So enters, too, the Travelling Companion, but he remains hidden, and receives no welcome). The Princess reveals her sense of trouble. The Wizard declares that mortal love has claimed her, but she thinks only of the marvel of the lover who does not fear her, and from whom she cannot hide her thoughts. The Wizard will give one dark thought that none can guess. 'When your lover comes to judgment, think of ME'.
Now from his hiding place steps the Travelling Companion. He kills the Wizard, wraps the severed head in his cloak, and by magic destroys the cave.