A merchant in the Shrouded Vale reports seeing a village that has mysteriously and suddenly appeared in a nearby cave.
- Talk to Lataryon.
- Investigate Shrouded Hollow.
- Find the Fading Tree.
- Defeat the attacking Wood Orcs (Lhurgash Clan)
- Return to Shrouded Hollow and talk to Laniriel.
- Talk to Erunor at the Fading Tree.