With the help of Anderin the party travels toward the dragons lair. Along the way they helped an elf that was trapped under a tree (that turned out to be a treant) and she wove them garlands made from leaves and flowers before turning into an owl and flying off.
They made their way into a section of the forest that was spider infested and faced off with some ettercaps and spiders before finding the entrance to the dragons lair behind a waterfall.
Milo entered ahead of everyone and found three elves guarding the entrance and managed to subdue them. They found a crevasse in the wall and followed that to a room with three ettins in it. After a fight they were dispatched. Moving on from there they found another room that held several more elves and convincing one to come speak with them they found out they had been captured from one of the ransacked villages and are being forced to guard the cave with the promise of being released. Fortunately Gravis dropped the Elf King's name and due to that the elves will not raise the alarm as the party travels deeper into the dragons lair.