Lost Stone is a small town that the party stumbles upon traveling from Nightfall to Paradise. The adults are all missing from the town and only children remain. The party meets Paravel and several other kids. The eldest children turn out to be Doppelgangers that manipulate, abuse, and rape the other children. After the party kills them they head into the local mine in search of the adults.
The party is ambushed and encircled by a band of Bugbears but defeat the attack. In the mine the party finds four adults, Sheila, Shandri, Geth, and Amundi. All spread throughout the mine, all nearly halfway buried, and not a one remembering how they came to be here.
The party also discovers a large hole leading down further into the earth. They leave the townsfolk at the hole an descend into the dark to look for more survivors. The hole leads into a dungeon. While picking the lock of the first door Darby and Poco fall into a trap – a chute that drops them into a disgusting pool of corpses, blood, and shit. They’re attacked by a Carrion Crawler that leaves them both paralyzed and drowning in blood and filth. Luckily, Nail had abandoned his war band and had been remaining in the area from a lack of options. He rescues the girls and joins the party looking to become a great warrior not just some hired thug.
The group moves through the dungeon defeating various monsters but the only trace of Lost Stone townsfolk are corpses. They defeat a power Dark Naga and claim a small treasure. Most notably they find a flying carpet.
Upon exiting the hole they find Amundi and Shandri dead and Geth and Sheila missing. When they return to the town empty handed most of the children are not surprised. Paravel pleads with the party to take the children with them and they agree. The party Sets off with Paravel, the children, and the dagger.