In his search for the Southern Oracle, Atreyu enters the Land of the Dead Mountains, but his passage is stopped by the Deep Chasm, home to Ygramul, a fearsome spider-like monster. Additionally, the dark wolf continues to track Atreyu, following in his wake. Bastian cheers on the hero from the school attic, sensing a similar loneliness between himself and Atreyu.

Making his way carefully through the mountain tunnels, Atreyu finds a luckdragon trapped in a spider web and fighting for its life. The young hero tries to stop the monster’s attack by explaining his quest and showing AURYN to Ygramul, but the spider refuses to let the luckdragon go. Eventually, after learning that the bite of the monster will kill within one hour but will also allow the victim to travel to any part of Fantastica that they desire, Atreyu agrees to be bitten. As he receives the bite, Atreyu proclaims his wish to travel to the Southern Oracle, and “the world [goes] black before his eyes” (66).

Atreyu awakens in a mountain with the luckdragon, Falkor, who also used his wish to travel to the Southern Oracle. Although injured, the two are tended to by the healing gnome, Urgl, and her husband, Engywook, who is a professor.