How do the Lilliputians react when Gulliver draws his sword and fires his pistol?

The Lilliputians react with terror and surprise when Gulliver draws his sword and fires his pistol because they have never encountered a being of such size and power before. To them, Gulliver appears as a giant, and his actions are alarming. Their fear is accentuated by the fact that they are a tiny people, and any demonstration of violence or weaponry, even if not directed at them, is perceived as a significant threat. This reaction is crucial in illustrating the theme of the absurdity of power dynamics, where Gulliver's size gives him an overwhelming power over the Lilliputians, causing them to respond instinctively with fear rather than curiosity or aggression. The contrast between Gulliver's intentions and the Lilliputians' perceptions highlights their vulnerable position and sets the stage for the complex interactions that follow.