The characters defend the keep from infiltration of the dragon cult army. The characters capture a cultist during one skirmish and interrogate him. They learn more about the dragon cult (also includes information gained from other prisoner captured; see below):
- Frulam Mandoth is a dragon cult leader.
- Rezmir is a dragon cult leader.
- The cultists are gathering treasure for Tiamat.
- The cult runs in the family.
- The cultists seem brain-washed.
Outside the walls, a flying kobold offers a challenge in exchange for some village prisoners. None of the characters offer to fight the half-dragon champion in a duel. Sergeant Markuth, a new friend of the characters, offers to fight the champion. His sister and her family happens to be some of the prisoners. If no one takes up the challenge, the prisoners will be executed. Sergeant Markuth loses the duel. The prisoners are set free and the dragon cult army leaves. Governor Tarbaw asks the characters to follow the trail of the army and gather information. Nesim Waladra, a monk student, asks the characters to find Leosin Erlanthar, his missing monk master who may have penetrated the dragon cult as a spy.
Following the trail along the rocky terrain, the characters arrive at a camp of quarreling human and kobold dragon cult grunts. The characters devise a battle plan and attack from two fronts. The plan is successful (included Saphira transforming into a dire wolf) and more information about the dragon cult is gained. Aathil wants to set a precedent for gathering information from prisoners and neutrals.