When asked if he knows the whereabouts of Cragmaw Castle, Reidoth suggests he does, but requests that the party first drive the green dragon out of Thundertree, along with the mysterious figures in dark cloaks he has spotted.
The party chose instead to feign siding with the cultists, in order to treat with the dragon. Reidoth wildshaped into a squirrel and fled the town, cursing the party for embracing a path he could not follow.