To the south of the Skull Woods lay the Village of Outcasts, where Kakariko Village would have been in the Light World. Few houses remained standing, since the majority of them had been razed to the ground. Moblin soldiers patrolled the abandoned streets, and signs commanded those visitors who lacked rupees to get out.

Link saw a stone statue in the middle of the village: a winged devil holding a pitchfork in front of him. The pitchfork appeared to be stuck into the ground, and the prongs were blocking an entrance. Link tried bombing the pitchfork and charging it with his sword, but nothing could break the prongs. In frustration he pulled backward on the prongs, and suddenly they came loose, propelling him backwards onto his rump. The entrance to the Gargoyle's Domain was now open.

Inside Link found a maze of overhangs and stairs, and encountered scores of fire-breathing monsters. He was able to climb some stairs to an upper floor, where windows let some light into the dark dungeon. Princess Zelda contacted him telepathically, advising him not to be deceived by the magic of Blind the Thief. Link remembered someone back in Kakariko Village telling him how a thief named Blind had his headquarters in a dark house, and would never go out into the sun. Acting on Zelda's clue, Link bombed a weak patch of floor, flooding light into a lower floor.

Link kept on exploring, going up and down to different floors. On the third floor Link found a valuable prize: the golden Titan's Mitt, which helped Link lift bigger and heavier stones. On the same floor Link broke into a prison block. The locks on a series of gates didn't require a key, which made Link suspicious. In the last cell he found a maiden, who thanked Link for saving her life and asked him to take her outside. Something wasn't right about the girl, but Link agreed to take her outside.

Link took the maiden to the entrance of the dungeon, but she asked him not to go that way. Really suspicious now, Link took the girl to the room he had flooded with light, and she walked innocently into the blinding sun. Link was disappointed for a second, but then she shrieked that the sun was too bright! Changing form, she revealed who she really was: a hairy goblin dressed in white, the Dark World incarnation of Blind the Thief!

Blind was careful to stay out of the light, and shot beams of energy and fire balls at Link. Link slashed at Blind's head with the Master Sword while dodging the monster's projectiles. When Link thought he had defeated Blind, the battle wasn't over. Blind's head remained floating in the air, while his white cape fell limp to the ground. Out of the cape grew a new head, while the decapitated head moved around the room, firing more balls! Blind, now regenerated, kept on moving around the room, shooting beams, so that Link was forced to dodge twice as much deadly magic. Link cut off another of Blind's heads, wondering when the madness would end. By now the room was filled with beams and fire balls, and Link spent most of his time ducking and dodging. At last he cut off Blind's third head, and the monster was destroyed.

Link picked up a blue crystal from the ground, and the real kidnapped maiden inside told him:

As the sages sealed the way to the Dark World, the Knights of Hyrule defended them from the attacks of evil monsters. I heard that the Knights of Hyrule were nearly wiped out in that battle... You are perhaps the last one to carry on the blood-line of the Knights... It is ironic that the last one in the line has the potential to become the Hero of legend. Surely you can destroy Ganon!