The heroes return to Waterdeep after a journey to Lielon and Neverwinter. In the weeks since they left they can see some changes upon their return. They notice an increased presence of the City Watch at the gates and on patrol of the city as well as armed contingents of the City Guard manning posts on the city streets. Tellazar, a native of Waterdeep, says that he has not seen anything like this since the God Myrkul unleashed his fiend army on the city during the Godswar.
The party also sees some families exiting the city with carts laden with furniture and possessions. Samira stops one man and asks him why he is leaving. The frightened man tells her that some evil power has been loosed in the dungeons below and their leader has control of twelve undead dragons which he is preparing to turn upon anyone who is ignorant enough to stay in the city.
The group travels to Corthen’s mansion to unload Nybod’s possessions from the wagon before cleaning up and meeting with the Open Lord. The others all return back at Corthen’s home a short time later. Tellazar informs the elf that Saedellas’s home in the South Ward where he, Ayremyr, Samira, and Rehs were staying is now a collapsed pile of rubble guarded by eight members of the City Guard! Erith also shows up looking ashen and distracted. He informs the others that his home is greatly damaged with interior walls broken down and his staircase shattered into splinters! He says that he showed his deed to the City Guard and was allowed inside to see all of the extensive damage. He says that a guardsmen informed him that his home was invaded on the 25th of Ches, one night after a similar attack took place in the South Ward.
Corthen offers the others use of his home and suggest everyone clean up so that they may visit Piergeiron as soon as possible. The party travels to the Palace and requests to speak to the Open Lord. They are brought before the paladin and two of the Hidden Lords. Lord Piergeiron asks the party if they know why their homes were attacked. Corthen speaks and tells the Lords that he believes whoever is responsible is trying to steal enchanted items from adventurers, much like the incident with the Deep Delvers.
Samira asks the Lords about rumors of Undermountain and something getting ready to destroy the city. One of the Hidden Lords answers her. The Lord tells her that not much is known, but from surviving adventurers out of the depths of Undermountain were questioned and spoke of hundreds of undead minions, including a large number of wraiths on the first level moving out from an area rumored to be the lair of Blagazuul the Black.
Corthen asks if the undead have attempted to enter the city. Lord Piergeiron tells the party that no undead have currently attempted to leave the dungeon, but the city is on heightened alert should the they try. Tellazar asks if they may be allowed to search their home for possessions buried in the rubble. The Open Lord quickly scrawls a message before he presses his ring into the wax seal. He tells the party to show the pass to the guardsmen present, before digging at the site.
The party remembers their mission to Lielon and presents the paladin with the scroll from Urloch the Clever. Corthen tells the Lords that although they did not learn how to destroy the Jester Mucklejon, they did learn that he had a pact with a sorcerer to achieve his undeath. He informs the Lords that the party will still search out and dispatch the evil little fool in the days ahead.