After camping outside the city gates overnight, the party was attacked by the Black Horses one final time. They rode through a gauntlet, shattering the bounty hunting group and slaying their leader. When they followed the tracks back to the group’s camp, they found a dead man who had been locked in a cave and left to die from the cold, wrapped in a shroud. The party’s kindness in giving the man a proper burial transformed his makeshift blanket into the Dream Shroud.
The road to Lyceum passed through a newly-formed dwarven kingdom called Diamond Wall. King Marben Diamondheart asked the party to help his fledgling kingdom with engineering and theft problems, which the heroes did so successfully. The King allowed the party to pass through his lands, after hosting a feast for them.
A small grove hid ruins occupied by a starving gnoll and his trained hyenas. The party defeated them, and discovered an old treasure tucked away inside a newly exposed crevice.