Mathias: At the edge of your sight you see three small, goblin-sized, creatures climbing up over the berm. They look like they are trying to sneak, and one has a hump on its back, like a larger backpack or something.

Kaelen: Trying to sneak past you are three small reptilian humanoids, one with (Highlight Kaelen's eyes only) wings folded against its back. They are about 30 ft from you.

Kaelen calls to Mathias and the others from the darkness. "Everyone, up! Three reptilians 30 ft ahead. One has wings."

He draws his bow and nocks an arrow, aiming at the winged one but holding off from shooting for now in case anyone wants to try diplomacy.

In the split seconds between Kaelen yelling and people stirring enough to take actions, 4 things happen.

The lizard guys all shout in a high pitched raspy whine.

The winged one unfurls his wings and flies up 30 ft off the ground.

One of the other two slips, rolls back down the berm, recovers and scampers towards the trees.

The final creature passes out unconscious, possibly from fright.

Mathias taking note of the the flying creature, summons a radiant beam of moonlight from the heavens, crashing down on to the winged enemy. With his spell cast, Mathias, tries to take cover from any oncoming missile fire. 

[[Casting Moonbeam - 9 radiant damage;  Con Save DC 13 for half damage.]]

You have stated your desire to murder the flying creature.  I will post initiative in a moment.

Everyone but Brekka is aware before the creatures can take actions.

Mathias's moonbeam strikes both the flying creature which had flown straight up, and the creature that fainted as it was immediately below the flying one.

The winged reptile is nearly killed, barely staying aloft. The unconscious one on the ground is destroyed instantly.

[[I don't know if it makes a difference or if you already accounted for it, but Brekka has advantage on initiative checks now thanks to the shield.]]

Quote from wyntarvox_ >>

[[I don't know if it makes a difference or if you already accounted for it, but Brekka has advantage on initiative checks now thanks to the shield.]]

 
Yes, which was cancelled by being asleep. I rolled flat instead of with disadvantage.

Arista springs to her feet, snatching up her quarterstaff and striding a few paces toward the scrambling intruders; bare-armed but unflinching, she draws in a lungful of chill night air and lets out a thunderous bellow: “HALT! DROP YOUR WEAPONS AND SPEAK, OR FACE THE MOUNTAIN’S WRATH!” (Intimidation: 23)

What is battle if not an improvised dance? Asariel wakes up and immediately upon seeing a threat, relaxes his muscles and gets ready to dance out of the way of any threat (dodge action) as he sees how it develops from Arista 

Kaelen maintains his aim on the flying creature, also waiting to see if Arista's threat has any effect. He readies an action to fire upon it if it takes offensive action. Finishing it off at this point might be a mercy to be honest.

Readied action: longbow to hit w advantage from Invisible 21, damage 4

Would Kaelen consider reaching into a pouch an offensive action under these circumstances?

((No, not until he actually sees that what the guy pulls out appears be a bomb or something dangerous.))

The flying kobold pulls a sling out of a pouch and drops it to the ground, then weakly descends to the ground. You hear the other kobold tear off through the underbrush, he's about 90 ft away through difficult terrain with half cover. 

Torban gets up and grabs his halberd but effectively just dodges. Brekka is up, we are still in initiative unless you choose not to pursue the fleeing kobold.

Brekka stands and groggily surveys the field.

"What is it? What's going on?!" he asks in a gravelly voice.

He hefts a spear into his large hand. He's ready to throw it, but not entirely sure at who or what.

[[Mechanically he's just holding an action to throw the spear at an enemy that seems to act hostile.]]

"Kobolds attempted to sneak into our camp. Mathias slew one and another ran off, but Arista scared the one with wings into surrendering. Perhaps you can get answers from him in Draconic."

I just want to check if anyone is planning on pursuing the one fleeing on foot or attacking the winged one, if not, initiative is over.

((Kaelen isn't planning on it.))

[[Brekka isn't either. He probably didn't even see where the one running off went.]]

(Asariel isn't going to chase)