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Henry walks along with the wounded regiment, wishing he had a wound too – a "red badge of courage" of his very own. (Aha!)
Henry feels that his chickenness is written on his forehead… which would be quite interesting, if it were possible.
Henry sees the worst thing he’s seen yet. It’s his old friend Jim Conklin ("the Tall Soldier") and it is apparent that Jim is in the process of dying. He’s afraid of getting run over if he stays in the road and somehow runs (despite his mortal wound) to some bushes on the side of the path.
As Henry and "the Tattered Soldier" watch, Jim dies a horrible, grisly, pitiful death in a scene like no other.
Henry, angry at losing his friend, rages internally at the battle.