The rain slacks off on the day following the owlbear attack, instead between the lessened intensity and the tree cover, the party travels through a cold mist for the day. Declan and Desmond follow the tracks of the creatures, eventually leading the party to an owlbear nest beset by giant wasps!
The battle with the wasps takes a heavy toll on Iliken, but the rest of the party emerges essentially unharmed. In the owlbear nest, the party finds three dead hatchlings and one live infant owlbear. The siblings shoulder Iliken aside and simultaneously attempt to adopt the creature.
Carrying yet another infant monster, the party continues on its path, following older tracks deeper into the Greywinder Wood. They are ambushed by goblins, strange wolf-like creatures of powerful size, and a creature later identified as a barghest — a demon in goblin shape. The bargest ensorcells Aideen into killing the horses (leaving only Iliken's mount and Gareth's alive). The monster sneaks away, along with one of the goblins, and is later found by the party, only to escape one more time.
The woods have been getting more and more wild, filled with thorny growths and dangerous thickets. When they finally rest in a small clearing surrounded by jasmine flowers, Gareth has a conversation with a being identifying itself as "Quercus".
Quercus warns the paladin of great dangers ahead, as the goblins work for the creature Skadi, who's presence seems to be twisting the woods, causing the strange growth. When Gareth suggest the party will stick to their course, Quercus leaves them a few potions fruits as a gesture of help.