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Paulus and Baldack meet in front of Tahra. Baldack informs Paulus that List charged into battle and was defeated by the rebels; Baldack blames List for their defeat because he disobeyed Paulus's orders, but Paulus blames himself for his hesitation, and vows not to hesitate again while besieging Tahra. Baldack promises to take Tahra and prepares to launch an attack, while Paulus promises to reinforce Baldack's battalion once his forces are ready, and warns Baldack to be cautious during his assault.
Inside Tahra, Eda and Linoan discuss the upcoming battle. Their conversation eventually turns to Eda's brother, Deen, whom Linoan praises for being a gentle man as well as a powerful warrior. Eda disagrees that her brother is perfect, but Linoan explains that she owes Deen for protecting her from the Empire's assassins while she was under house arrest for two years. Eda explains that Deen's rescue mission was Prince Arion's idea, and that in order to accomplish his goal, Deen had to pretend to have deserted from the army. She then reassures Linoan about the impending battle before departing.
The battle begins. During the battle, inside one of Tahra's houses, Homer and Shannam have a conversation. Homer notices that Shannam intends to flee from the city and warns him that people will be angry at him if he leaves. Shannam insists on running anyway, claiming that he is Prince Shannan of Isaach; Homer sees through his disguise but does not stop Shannam, as he intends to escape the city himself in the morning. Shannam wants to run away now, and so he leaves, but not before giving Homer his real name, which Homer notes is unexpectedly similar to Shannan's.
In battle, Deen may visit the house next to Paulus. Inside the house, he meets Altena, who gifts him the Dragonpike, Prince Arion's personal weapon. Altena explains that Arion did this as an apology for forcing Deen to be branded a deserter; Deen is reluctant to accept the gift, but Altena orders him to accept it and to protect Linoan in Arion's place, as Arion cannot leave Thracia unprotected. Deen proclaims that he will guard Duchess Linoan with his life.
During the battle, Nanna can also visit the house where Homer resides. Homer offers to "make some time" for Nanna, but Nanna is furious and slaps him, then reproaches him for having fun while Tahra is under siege. Homer first tries to explain himself, but upon seeing Nanna crying he decides to help defend the city and joins Leif's forces.
Later during the battle, King Travant and a contingent of wyvern riders commanded by McCloy appears. Travant explains that they are officially here to aid the Empire in its assault, but they are not inclined to help much – when the opportunity arises, they will seize Tahra for themselves. Travant asks McCloy not to damage the city much, then he leaves and McCloy begins his leisurely assault.
Eventually, Arion appears and suggests to Travant that they could aid Tahra instead of attacking it, as doing that would hurt the Empire. However, Travant notes that the Empire is much more powerful than Thracia, and that Thracia had been defeated even when they had control of the whole peninsula. Arion argues that they lost only because Raydrik betrayed them, but Travant replies that they were defeated nonetheless and asks if Arion wants to carry out his plan anyway. Arion admits that he does not, but requests permission to seize Tahra; Travant suspects that Arion is up to something, but gives his son free rein as long as he brings Tahra under Travant's control swiftly.
Arion then flies into Tahra and meets with Linoan. He requests her surrender, claiming that Thracia's army is about to fly into the city and that the Empire has sent priests of the Loptian Order – the Welkenrosen. The city will face genocide if she does not surrender, but Thracia will take over and protect the citizens if she does; Thracia taking over would also prevent the city from having to carry out child hunts. However, Arion explains that Leif and his forces will have to flee, as the Empire wants to capture him and Travant considers him a threat. Linoan agrees to Arion's terms, but says that she will go with Leif to overthrow the Empire alongside him. Linoan asks Arion if he will return Tahra to her after she succeeds, which he says he will. Linoan then leaves; Arion wonders if Leif can really succeed, and muses that he would like to meet Leif with Altena.
This section details unofficial strategies that may help with completion of the chapter. This may not work for everybody.
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If you would like to acquire the Dragonpike (which is located in the house far away in the southwest corner of the map), take extreme caution, as Deen will have to deal with a ballista, Paulus's Tornado spell, and general thunder magic, all of which can severely injure him, if not outright killing him in one hit. You can circumvent this by using a Warp staff to send him to the house, visit to get the Dragonpike, then use a Rescue staff to get him out of harm's way.
Don't be intimidated by the large number of enemy units on this map, as this is merely a defend chapter, and since Thracia 776 can have only fifty enemy units on the same map, simply unequipping some bulky and dodgy units and putting Nanna and Leif with the King Sword in the center is recommended. In fact, defeating Paulus to stop reinforcements isn't necessary for this reason. Do be prepared to heal your units, however.
And one final word: be prepared for the allied units. Magic and bows should help.