The beginning of the story recounts how Þórir comes to Iceland with his father, Oddr skrauti. They settled in Þorskafjörður. Later, Þórir went abroad raiding along with Hyrningr the son of Hallr of Hofstaðir, and gained much gold in Finnmark when he defeated some dragons that were in a cave north of Dumbshaf. When they came back to Iceland, Hallr wanted to get a portion of the gold on behalf of his son but Hyrningr was satisfied with his lot. This became a great controversy between Hallr and Þórir, leading to slaughter. It eventuated that Þórir killed both Hallr and Rauðr, his older son, but reconciled with Hyrningr, who had never been involved in the dispute.
Þórir's wife was Ingibjörg daughter of Gill, who settled Gilsfjörður, and their son was Guðmundr.
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