Terje Vigen, a sailor, suffers the loss of his family through the inflexibility of another man. Years later, when his enemy's family finds itself dependent on his benevolence, Terje must decide whether to avenge himself.
A stranger comes to work at widow Halla's farm. Halla and the stranger fall in love, but when he is revealed as Eyvind, an escaped thief forced into crime by his family's starvation, they flee and become two of the many outlaws of Iceland's mountains.
Two riders on their way to Warsaw stop at a monastery for the night and ask an old monk there to tell them the story of its founding.