The party investigates a scene of an ambush and follows the tracks into the Cloak Woods. They come upon a group of kobolds trying to push a full wagon with little success as the kobolds are exhausted. The kobolds are ordered to attack and drive the party away, but fail, the leader escapes. One kobold is captured and questioned, and a teamster named Kar Swift is rescued. Party learns of the Kobold Hall. Marisa and Beldon stay with the wagon while Kymas and Deadares escort Kar back to Fallcresst.