The party reaches New Bael-Turath, where Thug-Ray is resurrected. Gavrel meets with his former teacher, Magister Drevoxin. The Magister shows the party a huge flying vehicle, a Battleship, that will give them an advantage in the war against the Dragonborn. He also shows them a few failed experiments to merge Fiend and Dragonborn.
After resting for a few days, the party is sent to the Dwarven Lands, to investigate rumors of an alliance between the Dwarves and the Dragonborn. Pretending to be members of an underground movement fighting against the tyranny of the Tiefling Realm, the party obtains sensitive information from dwarves and dragonborn.
The dwarves are building dragon-saddles for the dragonborn, and also fist sized “bombs” filled with explosive powder. Having gleaned these secrets, the party leaves the underground city of the dwarves, but only after destroying the whole stock of bombs ready for shipping to the Dragonborn realm.
As the dwarven city is consumed in flames, the party escapes.