Although the first watch passes quietly for Cauldrev, Gavin catches sight of two figures sneaking towards the campfire during his vigil. Upon confronting them, he discovers they are goblins. While one presses the attack, the second throws something on the campfire making things very difficult for Gavin and his human eyesight. While the disadvantaged rogue attempts to hold off the goblins and raise the alarm, more lurking figures emerge from the night.
Chaos ensues as the adventurers struggle to get their gear and escape the confines of their tents. The goblins are joined by a savage bugbear and three hobgoblin soldiers. The apparent leader shouts out commands to his allies and they begin to move to advantageous positions on the battlefield. Gwynne assists Gavin’s blindness with magical illumination but it is too late to aid him as he is beaten to the ground by a massive blow to the head by the bugbear warrior. Seeing the quivering lump of their companion in a pool of blood on the ground quickly rallies the rest of the party, however, and they manage to gain the upper hand while reviving the unfortunate Gavin. Examination of the bodies shows that this is a small scouting party with minor provisions. Consideration is given to locating the base of operations for the goblins but is decided against as the group is unwilling to leave the pony and body unattended while they search.
They carry on in the morning and the remaining time in the pass is uneventful. The harsh mountains quickly give way to fertile farmlands. Workers can been seen in some of the fields but they pay little attention to the travelers on the road. The road has been empty but at midday, they come across a group of well-armed dwarven families traveling together. The dwarves tell them that they were delayed in leaving the city because everyone who leaves or enters is thoroughly questioned about their business. The dwarves are warned about the goblins in the pass but they appear to be more than prepared to handle any trouble that might arise. According to signs on the road, the party is headed towards the hamlet of Greyborough. Gwynne recalls there being an inn and hopes of a warm meal and a bed accompany the group as they journey onward.