Meliodas agrees to help Elizabeth, revealing how his business has been travelling from place to place to acquire information about the rest of the Seven Deadly Sins as well and letting her join him. The two, along with Hawk, soon stop over at the Bernia Village, a village famed for their delicious Bernia ale and its primary source of income. However, a Holy Knight Gilthunder has planted his sword in the center of the town, stopping all water sources. Despite the villagers' futile efforts, Meliodas easily removes the object and is hailed as a saviour of the Bernia Village. Gilthunder, wanting to confirm whether the removal of his sword was an accident or not, throws a spear imbued with his power towards the town, which is reflected back in the same direction by Meliodas, destroying Fort Solgales, Gilthunder's current location, and missing his head by centimetres.

Meliodas, Elizabeth and Hawk travel to the Forest of White Dreams, a foggy, dense forest where even the Holy Knights avoid. Inhabiting the forest are Prankster Imps, which harbour shapeshifting abilities that confuse travellers by impersonating their companions. After defeating the Prankster Imps, they find a Giant girl asleep in the forest, who introduces herself as Diane, a member of the Seven Deadly Sins who possesses the Serpent's Sin of Envy, declaring her crush on Meliodas. This surprise reunion is soon interrupted when Gilthunder arrives, binding all of them with his lightning magic and facing Meliodas in a one-on-one fight, where the latter is dealt a severe injury. Under the pretense of dying, he acquires information about the whereabouts of two members of the Seven Deadly Sins, Ban and King, as his apparent last wish, tracing their locations to the Baste Dungeon and the Capital of the Dead respectively.