Still lost in the mist, the party is forced to make camp deep in the Reikwald forest. In the night, they are attacked by a group of wargs. Grommel and Urgan chase after and defeat a pair of the creatures. When they arrive back to the campsite, they find the rest of their companions have been dragged off into the night. Following some strange lights, the dwarfs track down the rest of the party to an ancient circle of stones. The rest of the party are unconscious and being held captive by a group of forest spirits. The dwarfs eventually rescue their companions, slaying sprites and dryads in the process.