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In Denmark in the year 507 a.D., elderly King Hrothgar (Anthony Hopkins) dedicates his new mead hall in a drunken revelry. He and his people have conquered other lands and collected much booty. Although his queen, Wealthow (Robin Wright Penn) clearly disapproves, the assembled warriors and maidens clearly enjoy themselves. However, in a cavern not far from the mead hall, the singing and dancing is a painful nuisance to the misshapen half-human, half-demon Grendel (Crispin Glover). Enraged, Grendel attacks the mead hall and kills or maims many of the warriors. He spares Hrothgar's life, however. After he returns to the cavern, his mother, a water demon (Angelina Jolie) soothes him. The next day, Hrothgar orders the mead hall sealed and sends out a call for a hero to come and rid the kingdom of Grendel.

Several months later, Beowulf (Ray Winstone) answers the call. His troops are led by his second-in-command, Wiglaf (Brendan Gleeson). Beowulf and his band are not Danes but rather Geats, which rankles Hrothgar's proud battle commander, Unferth (John Malkovich). He mocks Beowulf's legendary feats. Beowulf orders the mead hall reopened; that is where he will fight Grendel. That night, another party (though more subdued) is held. Wealthow plays her lute and sings. She and Beowulf are clearly attracted to one another. Hrothgar promises to give Beowulf his Dragon Horn, a beautiful gold mead cup with a dragon carved into the side of it, should he kill Grendel. That night, after the Danes have gone to bed, Beowulf's men sing bawdy songs to lure Grendel. When Grendel arrives, he slays many of Beowulf's men. Beowulf strips nude to fight Grendel hand to hand. He bursts Grendel's ear drums then severs his arm. As Grendel slinks into the night, Beowulf taunts him with boasts about his own strength and power. Grendel returns to the cavern where, with his dying breath, he tells his mother the name of the man who killed him.

The kingdom rejoices at Grendel's death. After a day...