Free the captive villagers (level 1) is an optional quest.
Quick walkthrough[]
- Kill the Lizard King in level 1 of Dragon's Eye.
- Talk to the little girl in front of the tunnel to the next level.
Walkthrough[]
Once chapter 2 takes you to Dragon's Eye, level 1, make your way to the top-right corner of the map, and kill the well-protected Lizard King.
Then fight your way south, through the pens where the human prisoners are kepts.
(Killing any more lizard men other than their king is not technically required for completing the quest, but unless all party members can pass through by stealth, it's probably unavoidable.)
At the bottom, there's an opening that leads to the tunnel to level 2. Just before that tunnel, at (3320, 2400), stands a little girl (one of the villagers). Talk to her, and you get 30,000 exp and all the villagers on the map leave.
(The other villagers don't give any experience and don't have anything useful to say.)