Peig comes in a little late because she went to see Cáit's new nephew Éamonn.
The Devil leaves Séadna. Séadna decides what to do with the money - buy a horse, cow, get married so he doesn't have to mil the cow himself! Séadna goes to the fair to buy a horse. The neighbors start to wonder about him. Séadna watches a horse race and decides to buy the best horse - but changes his mind ("it would kill me").
Séadna meets up with a mysterious man of the thimble who knows about him. He finds his money is missing! He isn't too upset - kind of wishes things were just as they were before. He goes and borrows some leather from Diarmaid on credit, as he's done before.