Melandra sends a fire bolt back at the embattled Bugbear.

Attack: 22 Damage: 10

She then continues to advance on her victim.

 The scared Bugbear retreats further before Melandra using its action to dash. (WIS 10)

The other Bugbear howls in pain as Blinks swords sink into its flesh. It turns and swings its Morningstar at the halfling.

Attack: 14 Damage: 14

Blink is knocked senseless and goes flying into the nearby brush.

 Kara swings for the Bugbear.

Attack: 10 Damage: 9 and guts the beast.

 Seeing that the fight is done, Vishka runs over to Blink.

She casts spare the dying

 Griell walks over and lifts the still unconscious Blink.

"Looks like we have another pet goblin." she points to the creature lying nearby, "Best we tie it up and bring it back."

 Seeing that her quarry has fled, Melandra returns to the group and sets about tying up the goblin.

She drags the groggy creature to its feet. "Do not struggle and you will come to no harm."

 "Droop will behave."

The goblin appears to have very little fight in it.

 Ensuring that his bindings are secure Kara drags Iarno to his feet, rousing him.

 Vishka checks the Bugbear bodies but finds little of use beyond a few coins and a set of keys.

"Let's get back to town."

 "Truly I do not know how to thank you all."

Though her family has nothing to offer as a reward, Mirna tells the characters that she might know where a valuable heirloom is hidden. When she was a young girl, she and her family fled from the town of Thundertree after undead overran the place. Her family had an herb and alchemy shop, inside which a case containing an emerald necklace was hidden beneath a section of storage shelves. She never dared to return and retrieve it. The shop was in the southeast part of Thundertree.

She also explains that she is a friend of a druid named Reidoth. She suggests that they visit Reidoth and ask for his help, “since there’s not an inch of the land he doesn’t know.” She tells the characters that Reidoth recently set out for the ruins of Thundertree. The ruins are about fifty miles northwest of Phandalin, and she provides directions so the characters can easily find the place.

The party head back into town and make for the TownsMasters Hall.

 "I will take Blink back to the tavern, she needs rest."

 "We will join you shortly."

Kara, Melandra and Vishka escort the prisoners to Sildar.

 "Ah you have returned, good! I had begun to worry!"

Sildars jaw drops open in shock as he sees Iarno, "What is the meaning of this?"

 "There has been a misunderstanding."

Iarno laughs weakly, "These over zealous mercenaries have mistook me for someone else it seems."

 "There is no mistake."

Kara hands over the letter from the Spider. "Your friend here is the fables Galsstaff we have been hearing so much about."

 "I can explain."

 "I am glad to hear it Iarno." he gives the wizard a dark look.

"I will enjoy extracting those explanations personally. Kara if you would be so kind as to deposit the prisoners in the cells we can reconvene in the morning. You are all in need of a good night sleep I suspect."

 "We will not argue with that."

The party deposits the prisoners and heads back to the Stonehill Inn for a food and rest.

 First thing Blink heads round to Barthen to trade.

 Melandra stays behind to study for a few hours while the others go to the Coster.

She resummons her familiar as a black cat and attunes to the staff of defence.