The characters are able to easily sneak up on the camp because of the enormous amount of noise from the Waterfall. The heroes choose stealth for their first strike. They slowly take out all of the goblins outside of the hidden waterfall. BUT, one is able to escape inside and warn the others setting up a deadly showdown.
The heroes setup outside the waterfall and wait for the goblins to make their move. Getting tired of waiting, the heroes courageously charge through the waterfall…. Inside the cave is a showdown of epic proportions. The heroes were doing well but a goblin spellcaster showed up and began to reign down curses and hurt on the heroes. The heroes strategically retreated to outside the waterfall and the goblins pursued them. Iron Tooth and the paladin locked in a deadly duel outside the waterfall. After a close battle the heroes killed Iron Tooth, the goblin caster, and all the remaining goblins. Inside the heroes found a good amount of treasure including a magical battle axe that Iron Tooth owned and several magical suits of armor and a lot of gold. A letter from Kalarel is found talking about destroying the heroes who have recently came to Winterhaven. With this proof the heroes head back to Winterhaven.