The party engages the Banshee briefly, but she nearly kills Avron with a single blow and everyone decides that discretion is the better part of valor. The party flees back to the boat and sets off once more across the underground lake. Crossing the lake, however, they attract the attention of a Water Orm which nearly capsizes the boat before Liath’s sharpshooting puts it down.
They discover a damp cavern full of raging waterfalls and cruel, sharp, stalactites. There is a chest overgrown with mineral formations and a key hanging from a chain amidst the most powerful of the falls. The party spends an inordinate amount of time debating how to retrieve the key, but eventually they get the chest open, revealing a magical crystal ring that Zarunal claims as his own. Unfortunately, not long after he begins wearing it the crystal begins to grow, affixing itself to his hand and gradually threatening to take over his entire arm. Zarunal is forced to keep his hand in a mitten full of rocksalt and rice to keep the crystal from growing further.
Later, the party enters a water-filled cavern where rests Marid Genie, entombed in ice. They free him, but he demands the return of his lamp. They are unsure how powerful he is, and agree to look for his lamp elsewhere in the caverns.
Eventually a new set of caves is reached, and the party prepares to delve into the last of the unexplored passageways.