The party returns to Falore as heroes, but with a sense of foreboding concerning the strange light from the South. Checking in with the town alchemist, they learn that the elixir recovered from the witches appears to have mind controlling properties. The alchemist also tells them that one of the mice he was testing on was unmade into a silvery dust due to an overdose of the substance.
Meeting with the Falore council again, it is decided that the party will travel South towards Cor Winnish to investigate the glow, which the Falore night watchmen had also witnessed. Arriving in Cor Winnish, the party finds all the citizens gone and piles of a silvery dust littering the town, along with many hobgoblin and knoll corpses. They gather two sacks of this powder for further study. Near one pile they dicover an ancient pendant that they discover, after some experimentation, has the power to slow the fall of wearer. Reaching the center of town they find what appears to the remnants of an explosion near the fountain in the town square. They also find a party of knolls, the leader of which has the head of a hobgoblin captain on a spear. After a nearly fatal battle with the gnolls, the party was able to recover a letter from the corpse of the hobgoblin captain before heading back to Falore. On the way back they found two additional hobgoblin corpses, burnt even down to the bone in some places.
Upon hearing of the occurrences in Cor Winnish, and discussing the matter among themselves, the council decides to hire the party to escort an envoy from Falore to the larger Northern cities of Tremere and Saltus, in order to cement firm alliances with them against future hobgoblin incursions. The council reveals that they have heard word of stirrings among the hobgoblins in the North, and possible military exercises in the Dead Plains, where the Carthan crater lies. The party accepts their offer, and decides to take the northern road along the edge of the Greenwood to Tremere.