Obtaining cursed treasure, Fafnir’s father had a run of bad luck, eventually resulting in having his son Fafnir kill him for the treasure. Fafnir was once a man, but the curse caused him to be a dragon forever. His greed caused him to guard the treasure horde closely.
Sigurd, the son of a king who died in battle, was being raised to be a great hero. One day his mentor Regin (a brother of Fafnir) talked Sigurd into obtaining a great treasure, the treasure guarded by Fafnir. Sigurd agreed, but only if Regin could produce a strong sword. The first one broke on a stone when Sigurd tried it out. So too did the second sword. The third time around, Sigurd’s mother heard about what was happening and she gave her late husband’s broken sword, which had once been a magical sword, to Regin. Regin used the broken sword to make a new sword and presented it to Sigurd. Sigurd tried the new blade on a piece of iron, and it split the iron in two, leaving the sword unscratched.
Together Regin and Sigurd travelled to the ravine where Fafnir was to be found. Regin stayed back as Sigurd went in quietly and hid in a pit where he knew Fafnir would come by. Not long after, Fafnir’s footsteps could be heard as he came along, and as he walked over the pit, Sigurd thrusted his sword into the heart of Fafnir.
Crying out in pain, Fafnir explained that as he dies, his treasure would bring death to Sigurd. “I will die anyway” Sigurd replied and thrust the sword in deeper, bringing death to Fafnir.
Regin then asked to have Fafnirs heart roasted and as Sigurd cut the heart out, Regin built a fire. While the heart of Fafnir was cooking, Sigurd touched it with his finger, and as it was hot, he put it into his mouth. Suddenly Sigurd could understand the language of the birds!
But the birds were talking amongst themselves, and were saying that Regin would kill Sigurd to keep the treasure all to himself. Understanding his mentor’s treachery, Sigurd drew his sword again, and cut off Regin’s head. The curse died with the last member of the cursed family, and Sigurd kept the treasure without inheriting the bad luck.