Klarg, his pet wolf Ripper and a goblin with a gnawed-off ear catch the adventurers by surprise. Klarg seems furious that the adventurers have gotten through the ‘worthless goblins’ and reached his lair. He vows to take care of the threat himself. The group follows Lilvari’s plan of focusing their attacks on Ripper. The plan succeeds. Once Ripper falls, Klarg’s true colors shine through. The bugbear runs for his life. He makes a quick retreat down the cliff at the western edge of his lair. To stop him, the adventurers slay the goblin and throw his corpse over the side. The corpse connects, knocking Klarg from the side of the cliff. The fall, however, isn’t great enough to injure him. Klarg escapes from the cave.

After resting and feasting on Klarg’s roasted pet wolf, the adventurers set off to explore the rest of the cave. They come upon a room of resting goblins. At the back of the cave is a human captive who’s been severely beaten. The adventurers are outnumbered. To even the odds, Dare attempts to lure a few goblins out. The plan fails, and a fight ensues. As it becomes apparent that the adventurers have the upper hand, Yeemik, the lead goblin, drags the human, Sildar Hallwinter, to the edge of the escarpment and offers a truce: Kill Klarg and he’ll give them Sildar. There’s no deal. The fight continues, and with Sildar’s help, the adventurers finish off the goblins.