The Light of Alfheim

Head forward and destroy the pulsating knot blocking your path by hitting its center with the Leviathan Axe.

Continue forward and destroy another knot.

As you proceed, you'll find a Lore Marker to your right. To its right is another knot; destroy it to access a Hacksilver chest.

As you approach the end of the bridge, Dark Elves will attack. Use Atreus' arrows to stun them, then close in for attacks. Avoid their trident lunges and projectile bombs. They are vulnerable to Frost damage.

After defeating the Dark Elves, approach the nearby knot. You'll discover that destroying only one knot is insufficient as it will regrow. Look for a second knot behind the first, line them up, and throw the Leviathan Axe through both to destroy them permanently.

Pass through the door to find a Legendary Chest on your right. It contains an Enchantment, or if you haven't collected three pieces of the Muspelheim Cipher, it will contain one.

Follow the path around the lake to find Sindri's shop. Speak with him to access new wares and crafting recipes.

At Sindri's shop, you can craft two new armor sets: the Viken set and the Wolfskin set. Consider upgrading to the Wolfskin chest and waist pieces if you are currently using the Boar Hide set, but the bracers are not an upgrade over Týr’s Lost Unity Gauntlets.

New Pommels are available, with the Light Grip of Protection and Light War Handle being good options, especially if you don't have the fully upgraded Versatile Warrior’s Handle.

Three new Talismans are available: the Talisman of Rejuvenating Fury (releases a stunning shockwave and restores health on stun grab), the Talisman of Eternal Fury (restores Rage on use and increases Rage gain rate), and the Talisman of Unbound Potential (instantly refreshes Runic attack cooldowns). The Talisman of Unbound Potential is highly recommended.

Upgrade your Leviathan Axe to Level III using the Frozen Flame.

Upgrade your newly crafted Wolfskin chest and waist pieces and transfer your Enchantments from your old armor. Sell the old equipment for Hacksilver.

Upgrade your new Talisman if you have the resources. After equipping your Enchantments, Kratos should reach Level 3.

Purchase new skills for the Leviathan Axe at Sindri's shop. Consider Glacial Permafrost first, followed by Ranged Combat skills like Hunter Killer I, Leviathan’s Fury, and Evasive Storm.

Head west of the shop to find three pulsating knots. Line them up and throw the Leviathan Axe through all three to free the boat. Interact with the boat to pull it into the water and board it.

Head east along the lake towards a white droplet. Have Atreus pick it up to receive a Yggdrasil’s Dew of Cooldown, permanently increasing your Cooldown stat by 2.

Follow the water through the tunnel.

Continue on the only open path until you reach the Lake of Light with the Ringed Temple at the back.