The party travels to Phandalin, chased for a while by Klarg and his goblins, before successfully arriving in the town and delivering the goods they were escorting and receiving their payment. They travel to the local inn for the night, where they hear a number of rumors and receive a number of opportunities;
- Lorna followed up on a lead and found out from the halfling Qelline Alderleaf that the druid she has been searching for is currently living in the town of Arboron.
- Sister Garaele asked Kharl to visit a banshee out at Old Owl Well, and gave him a comb to present as a gift.
- The party found out about orcs raiding from the east, which there is a bounty on.
- The party was asked to rid the town of the Redbrand faction by multiple parties. Varyk overheard from a group of members that the group answers to a wizard named Glassstaff and appears to answer to the Black Spider.
- The party was asked by Hudson to maintain pressure on the goblin attackers, hunt down Grunden Rockseeker, find out what is going on and who is behind it, and find his sword, Laventius’ Bane.
Before acting on any of these opportunities, the party waits until night and returns to the goblin hideout, with the intention of defeating Klarg and finding out where Grunden Rockseeker might be held. After a rough skirmish at the front of the cave (the goblins having set up more defensive structures in the previous day), the party reached a stalemate with Klarg, who had holed away in a well defended cave.
Divining from conversation and hints that the ‘Black Spider’ that Klarg serves might be a dark elf, Varyk tricks Klarg into believing that he is a friend, and gets them to reveal that they came from a place called Cragmaw Castle. The ruse is discovered when Klarg’s wolf smells Urllexin, but before they can react, Varyk engulfs them all in flame, while Lorna and Urllexin shoot from the shadows.
Varyk stabilises Klarg and ties him up for further questioning, and the party loot his treasure chest and discover a lost shipment of supplies bound for Phandalin.