Thor and his companions arrived at Utgard. Utgarda-Loki was the king of the giants.

Utgarda-Loki told them he would allow them stay at Utgard, if they had any special skill. Loki
declared he could out-eat any giant. Loki ate all of the meat from the bone, but his rival
named Logi, ate meat, bone and even the trencher. Obviously Loki lost to Logi.
Then Thialfi challenged the giant in a foot race, but he lost all three races against the giant
named Hugi, each time doing worse than the last time.
Next, Thor challenged them a drinking contest. Utgarda-Loki had a servant bring out a long
drinking horn. Anyone able to empty the horn in one draught would be considered a great
drinker, and a good drinker in two draughts.
Try as he might, Thor could not empty the horn in one draught. The frustrated thunder-god
couldn't even finish it in two or even three draughts.
Thor was becoming quite belligerent, preferring to fight someone. Utgarda-Loki challenged
Thor if could lift a large cat. Thor struggled and tried to lift the large cat off the ground, but
failed. All he succeeded was lifting one of the cat's legs.
Thor insisted on fighting someone. Utgarda-Loki, however, sent an old crone named Elli to
wrestle with Thor. Thor could not even move the crone, but the old woman managed to pull
him off balance.
Thor was ready to bash the giant for the embarrassment, but Utgarda-Loki placating offered
the angry god and his companions a place to sleep.
In the morning, after Thor and his friends ate their breakfast, the king of the giants took them
outside of Utgard.
Utgarda-Loki revealed the truth of the events of the last few days. Utgarda-Loki told Thor
that he was Skrymir, the giant they met in the forest.
Skrymir was actually an illusion. Had Thor struck right on the mark, he would have killed
Utgarda-Loki. The contestants that Thor and his companions had compete against, were
also illusions.
Loki did not lose the eating contest to a giant (Logi), but to a wildfire. While Thialfi raced
against Utgarda-Loki's thought, not the giant Hugi.
The other end of drinking horn was out in the sea. What Thor was drinking was the sea. The
level of the sea had actually dropped considerably from Thor's deep draughts.
As for the cat. Well, one of the cat's legs, Thor managed to lift off the ground was actually
the tail of the Midgard Serpent. And the old crone (Elli) Thor was wrestling with, was nothing
but "old age" itself.
Utgarda-Loki was really quite amazed what Thor managed to achieve. Utgarda-Loki told
Thor to leave Jötunheim. He told Thor that he would protect his domain again with
deception and illusion if the thunder-god ever returned.
Thor was outraged by the deception, and would have killed Utgarda-Loki, had the giant not
vanished out of thin air. Thor was going to storm Utgard, but the castle also vanished. Thor
had no choice but to return home.