The men - Watson, Holmes, and Lestrade - take up position about 200 yards from Merripit House, each armed with a pistol. Filled with anticipation, Watson sneaks closer to the house, and sees Sir Henry and Stapleton drinking inside. Miss Stapleton is nowhere to be seen. After a few minutes, Stapleton leaves the house and enters a nearby out-house. While he is inside, Watson hears some sounds from within. After Stapleton returns to the main house, Watson reports back to the others.
Meanwhile, a fog begins to roll in, upsetting Holmes since it will compromise their visibility. They retreat a bit, to find some higher ground. From that vantage, they soon see Sir Henry anxiously pass. A moment later, Holmes cries out that the hound is coming. As quickly as he registers Holmes's terror, Watson sees an enormous hound, which does not look mortal at all. Fire bursts from its mouth and its body sparkles in the night. All three men are paralyzed by the savage sight.
Regaining their composure, Holmes and Watson shoot at the beast. Though the shots do not stop it, it does cry out in pain. Holmes chases after the beast, and finds it prepared to tear out Sir Henry's throat. Holmes shoots the animal five times, killing it.