The “noble, renowned” (7.338.2) Gawan leaves King Arthur’s court. He rides through a forest on his horse, Gringuljete, until he reaches a valley where a large army is encamped.

Gawan rides up to meet the army. Speaking to a squire, he learns that the “great army” (7.344.6-7) is under the command of King Poydiconjunz and Duke Astor. Meljacanz, the son of King Poydiconjunz, reveals that he wishes to joust against a fellow knight, but Gawan declines his offer as he has sworn not to fight anyone until his duel against Kingrimursel. Gawan also learns that another army is approaching, one under the command of Meljanz of Liz. Since his childhood and since the death of his father, Meljanz has been raised by Prince Lyppaut. Now, Meljanz wishes to marry Obie, the daughter of Prince Lyppaut, but she has declined his proposal. She is arrogant and foolish, though Meljanz blames Prince Lyppaut for intervening in the romance. Gawan travels to the Lyppaut castle.

In the castle, Obie has a rude demeanor when talking to Gawan. She dismisses him as a “merchant” (7.358.7), riling his anger. A burgrave (military governor) named Scherules treats Gawan better. He welcomes Gawan to the city, defending him to Lyppaut when Obie is loudly critical and when Gawan is accused of being a “counterfeiter” (7.