Alptraum visits Madame Xanadu, and tells her of his strange dream. She indicates to him that "Inala" is the most beautiful of the angels, who guards Paradise, and that "Sunala" is a fallen angel, an angel of death, presiding over the Sea of Souls. She also warns him to beware of Gallee witch hunters, especially when she learns that he is a vampire, for some of the Gallees think that vampire bats are undead creatures, and hunt them down. She also tells him of the legends of the Nephilim, descendants of mortals and fallen angels, who possess remarkable powers – and Alptraum wonders if he might be such a being.