At the beginning of this stage the Settle to Carlisle railway is met again and soon afterwards one of the most challenging parts of the entire journey is encountered. The path, more on the map than on the ground, is across wet, reedy and desolate terrain on the slopes of Baugh Fell and Swarth Fell.

From Baugh Fell arises Rawthey Gill which becomes the River Rawthey and the pathless route follows this until it reaches a track at Whin Stone Gill Bridge. The distant views of the Howgill Fells widen as the path nears the Sedbergh/Kirkby Stephen road which is crossed.

Then follows a delightful section of 6 miles down the Rawthey valley – initially at high level but dropping down to the river as Sedbergh is approached. Two becks have to be forded before Cautley, dominated by the mile long Cautley Crags and with a distant view of Cautley Spout, is reached. The path drops right down to the river and passes its confluence with Clough River just before entering Sedbergh.