While delivering goods to Phandalin, the party encountered the dead horses of Gundren Rockseeker and Sildar Hallwinter. They defeated a group of ambushing goblins, and traced their path back to the hideout of the Cragmaw goblins. The party slew the present goblins, their bugbear leader Klarg, and his pet wolf. They rescued Sildar and retrieved a load of supplies belonging to the Lionshield Coster.