The party begins the foundations for creating there mercenary guild within the city, having worked out a deal with Ham the owner of the Drunken Monk to rent out the lodgings on the second floor, as well as hire staff to the cottage.
Cassandra Adler pays the party a visit and explains she believes that Xanathar is trying to make a push into the city by taking over the Dreammist trade with the attack on the Duck and Drake Inn. (She is not aware that another party of adventurers not affiliated with Xanathar actual is responsible for the attack). She tasks the party with locating the den within the Cobalt Caverns that Xanathar is making the dreammist.
The party comes upon a never ending party with skeletons and a unicorn, located in the back the party finds two Mind-Flayers making Dreammist from abstracting the consciousness of their prisoners.