[1] To describe the scene in which the city of Tarsis is destroyed by dragons, Margaret Weis studied World War II films of the bombing of London.

[2] During the scene in which most of the characters are killed in a dream, Margaret Weis references Othello by William Shakespeare, with Caramon speaking the phrase: "No, you're wrong, Tanis.

The refugees of Pax Tharkas, freed from the Dragon Highlord Verminaard, are on an intermittent stay before finding a new home in Thorbardin, ruled by the dwarves, who have agreed to house them temporarily.

Whilst in Tarsis, the heroes meet the Silvanesti princess, Alhana Starbreeze and a small group of Knights of Solamnia led by Derek Crownguard.

During the attack, the party is split: Tanis Half-Elven, Riverwind, Goldmoon, Caramon, Raistlin and Tika are rescued by Alhana Starbreeze while Sturm Brightblade, Flint Fireforge, Tasslehoff Burrfoot, Gilthanas, Laurana Kanan and Elistan escape with Derek Crownguard and his knights.

Laurana drives off Sleet by shooting the dragon in the wing, but the heroes are shipwrecked on Southern Ergoth, an island south of Sancrist inhabited by native wild elves (the Kagonesti) and refugees from both the Qualinesti and Silvanesti nations.

The Silvanesti then bring forth a Kagonesti Elf named Silvara, who heals Gilthanas, and escort the group to Qualimori, the refugee city established by the Qualinesti elves.

It becomes evident that tensions are high between the three groups of elves: the Silvanesti and Qualinesti are ancient rivals and refugees, and both nations consider themselves above the "wild" Kagonesti, who are native to Southern Ergoth and whose lands they are occupying.

The heroes eventually decide to split the party with Derek and Sturm taking the orb on to Sancrist while the rest of the group lures away the pursuing elves.

Silvara reveals the great secret that she is a silver dragon, and agrees to aid the party in forging Dragonlances, which will be necessary in turning the tide against the Dragonarmies.

The adventurers pose as a traveling magic show, with Raistlin the star magician, and are able to make some money and escape undue attention.

Back on the mainland, Laurana and Flint testify on behalf of Sturm Brightblade before the knights, leading to him being fully exonerated of all the charges Derek brought against him.

Lord Gunthar is so impressed by Laurana that he asks her to travel to the High Clerist's Tower to bring the news that Sturm has been cleared and to deliver the new Dragonlances to the knights.

The city streets are dangerous: it has been overrun by the Blue Dragonarmy and a large portion of the army is present in the town, occupying every bar and inn.

Finally, as supplies near their end, an increasingly desperate Derek orders a frontal assault on the encamped Dragonarmy, stating that they will flee before the charging knights.

Bakaris, the ranking Dragonarmy commander, brings the headless body of Lord Alfred and a dying Derek up to the tower and starts to taunt the few remaining defenders when he is silenced by Laurana shooting him in the arm.

The Dragon Orb also drives all the attacking draconians insane, causing the advancing Blue Dragonarmy, which had been on the cusp of victory, to collapse into utter chaos.