The first part of the opera takes place in a forest where the giant Fafner lives.
He has used the magic tarn helmet to change himself into a dragon so that he can guard the treasure of the gold and the ring (we saw how he got the treasure in the first opera, Das Rheingold).
Siegfried, who was not yet born at the end of the second opera, Die Walküre, is now a young lad.
He has been brought up by the dwarf Mime, Alberich's brother.
Mime is just as horrible as his brother.

Mime is hammering away at the anvil, trying to repair the sword that was smashed to pieces by Wotan in Act Two of Die Walküre.
He wants to make the bits into a strong sword, but every time he thinks he has managed it Siegfried picks up the sword and breaks it with his strength.
The reason that Mime wants to make the sword is so that he can give it to Siegfried (who is obviously the hero who is meant to have the sword in the end) and tell him to fight the dragon.
Then Mime will be able to get the ring from him so that he can have power over all the world.
When Siegfried enters he brings a bear from the forest.
The bear chases Mime and Siegfried laughs.
Then he lets the bear go free.

Mime says to Siegfried that he should be thankful to him for looking after him as a child and bringing him up.
He has never told Siegfried who his parents were (they were Siegmund and Sieglinde, both now dead).
Siegfried does not understand anything about how babies are born.
He has never seen a woman before.
He only knows Mime who is pretending to be his father.
Siegfried has noticed that young birds look like their parents and he asks Mime why he does not look like him.
In the end Mime is forced to tell Siegfried about his parents and about the sword that was smashed by Wotan.
Siegfried tells Mime to forge (make) the sword so that he can kill the dragon.
Siegfried goes off.

Wotan, the chief god, appears.
He is disguised as a wanderer.
Mime says he wants to ask him three questions, and if he cannot answer them he can chop off his head.
Wotan agrees.
First Mime asks him the name of the race of people who live below the earth.
Wotan says they are the Nibelungs.
Then Mime asks who are the people who live on the earth’s surface.
Wotan says they are the giants.
Then he asks him who lives in the sky.
Wotan says they are the gods.
He has answered all three questions correctly.
He now tells Mime it is his turn to ask Mime three questions which he must answer if he wants to keep his head.
Mime is terrified, but has to agree.

First Wotan asks him who are the people whom Wotan loves a lot although he has to be harsh with them.
Mime answers: the Wälsung race.
Then Wotan asks him the name of the sword that Wotan left for Siegfried.
Mime answers: Nothung.
Finally Wotan asks him who can put the pieces of the sword together.
Mime is now terrified because he does not know the answer.
Wotan tells him the answer: it is the person who does not know fear.
He says to Mime that he can keep his head for the moment.
He will leave it to the fearless person to chop it off later.

When Mime and Siegfried are together again, Mime tries to frighten Siegfried so that he knows what fear is.
He tells him all about the huge dragon in the cave. "
Does that not frighten you?"
he asks him. "
Not a bit" answers Siegfried, who likes the thought of fighting a dragon.
Siegfried works at the anvil and starts to make the sword.
Mime is thinking of how he will trick Siegfried after the dragon has been killed, so that he can get the sword and kill Siegfried.
At last Siegfried manages to make the mighty sword.
He calls out its name: "Nothung"!
Then he crashes the sword down on the anvil which splits into two pieces.
The first part of the opera takes place in a forest where the giant Fafner lives. He has used the magic tarn helmet to change himself into a dragon so that he can guard the treasure of the gold and the ring (we saw how he got the treasure in the first opera, Das Rheingold). Siegfried, who was not yet born at the end of the second opera, Die Walküre, is now a young lad. He has been brought up by the dwarf Mime, Alberich's brother. Mime is just as horrible as his brother.
Mime is hammering away at the anvil, trying to repair the sword that was smashed to pieces by Wotan in Act Two of Die Walküre. He wants to make the bits into a strong sword, but every time he thinks he has managed it Siegfried picks up the sword and breaks it with his strength. The reason that Mime wants to make the sword is so that he can give it to Siegfried (who is obviously the hero who is meant to have the sword in the end) and tell him to fight the dragon. Then Mime will be able to get the ring from him so that he can have power over all the world. When Siegfried enters he brings a bear from the forest. The bear chases Mime and Siegfried laughs. Then he lets the bear go free. 
Mime says to Siegfried that he should be thankful to him for looking after him as a child and bringing him up. He has never told Siegfried who his parents were (they were Siegmund and Sieglinde, both now dead). Siegfried does not understand anything about how babies are born. He has never seen a woman before. He only knows Mime who is pretending to be his father. Siegfried has noticed that young birds look like their parents and he asks Mime why he does not look like him. In the end Mime is forced to tell Siegfried about his parents and about the sword that was smashed by Wotan. Siegfried tells Mime to forge (make) the sword so that he can kill the dragon. Siegfried goes off.
Wotan, the chief god, appears. He is disguised as a wanderer. Mime says he wants to ask him three questions, and if he cannot answer them he can chop off his head. Wotan agrees. First Mime asks him the name of the race of people who live below the earth. Wotan says they are the Nibelungs. Then Mime asks who are the people who live on the earth’s surface. Wotan says they are the giants. Then he asks him who lives in the sky. Wotan says they are the gods. He has answered all three questions correctly. He now tells Mime it is his turn to ask Mime three questions which he must answer if he wants to keep his head. Mime is terrified, but has to agree.
First Wotan asks him who are the people whom Wotan loves a lot although he has to be harsh with them. Mime answers: the Wälsung race. Then Wotan asks him the name of the sword that Wotan left for Siegfried. Mime answers: Nothung. Finally Wotan asks him who can put the pieces of the sword together. Mime is now terrified because he does not know the answer. Wotan tells him the answer: it is the person who does not know fear. He says to Mime that he can keep his head for the moment. He will leave it to the fearless person to chop it off later.
When Mime and Siegfried are together again, Mime tries to frighten Siegfried so that he knows what fear is. He tells him all about the huge dragon in the cave. "Does that not frighten you?" he asks him. "Not a bit" answers Siegfried, who likes the thought of fighting a dragon. Siegfried works at the anvil and starts to make the sword. Mime is thinking of how he will trick Siegfried after the dragon has been killed, so that he can get the sword and kill Siegfried. At last Siegfried manages to make the mighty sword. He calls out its name: "Nothung"! Then he crashes the sword down on the anvil which splits into two pieces.
Siegfried (opera)