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The story opens about two years after the events in 'Avengers: Age of Ultron'. Thor (Chris Hemsworth), having failed in his quest to locate the Infinity Stones and having also been dumped by Jane (although he insists it was a 'mutual dumping') is hanging in chains above a fire pit before being brought before the monstrous fire demon Surtur. Surtur believes his destiny is to bring about Ragnarok, the complete destruction of Asgard. Thor learns from Surtur that Odin (Anthony Hopkins) is not on Asgard, so uses Mjolnir (his hammer) to escape and destroy Surtur, keeping his crown/skull, the demon's power source. Thor returns to Asgard and sends Surtur's skull down to the vaults but then finds Heimdall (Idris Elba) has been replaced as sentry of the Bifrost Bridge by the inept Skurge (Karl Urban) who explains that Odin accused Heimdall of treachery. Heimdall subsequently fled and his whereabouts are unknown.

Reaching Asgard, Thor sees a massive statue of Loki (Tom Hiddleston) as well as Odin lounging around, enjoying a play about Loki's 'heroic sacrifice' while fighting the Dark Elves. Realizing what's happened, Thor quickly forces Loki (who usurped and disguised himself as Odin prior to the end of 'Thor: The Dark World') to drop his charade and demands to know what happened to Odin. It is revealed that Loki had placed Odin under a spell and dumped him in a retirement home in New York City. By the time they get there it is being demolished. Before they can plan their next move, Loki is suddenly pulled through a dimensional hole in the sidewalk and a card with an address (177a Bleecker St) is left behind. Thor goes there and finds Doctor Stephen Strange (Benedict Cumberbatch), the mystic guardian of Earth, who agrees to help him find Odin on the condition that all Asgardians leave Earth. Thor agrees, and after doing some research (during which Thor is constantly teleported around Strange's Sanctum, a disorienting experience) Doctor Strange deduces that Odin is in Norway. He then releases Loki from his endless fall, and when Loki tries to attack an exasperated Strange, the doctor unceremoniously sends them both through another portal.

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