The party arrives in Phandalin after defeating Nezzar the Spider and notices a strange floating ship above Tresendar Manor. The sky darkens unnaturally, creating an oppressive atmosphere that affects Bruise and Geralt more than the others. In town, they find an angry mob at the town hall demanding answers about kidnapped loved ones. The Mayor explains that strange goblins with unusual powers have been abducting people, but he has no resources to stop them.
The group reports their success to Gundren Rockseeker, who rewards them with gems and promises future payments. They meet Sister Garaele, who confirms the goblins' involvement and cures Trix of a curse. At the Stonehill Inn, they encounter Ymari, a Satyr from the ship, who admits she’s spying on the town under orders from her employer, Rhulian, to investigate a Mindflayer tied to the town's troubles.