From HGWiki

Even worse than the previous area due to limited pathing and the elves shadow stepping!!!. If you do not have ranged spells or weapons you will find your characters running around attempting to target the shadow stepping elves (or worse standing still when they lose tracking) whilst being peppered with arrows from the archers and spells from the casters.

Rest Spawn Chance

Zero

Creatures

• Shadow Elf
• Shadow Sniper
• Shadow Sorcereress
• Shadow Master
• Shadow Guard

Exits

• Shadow Elves - Forest Floor
• Shadow Elves - Hall of Shadows
• Shadow Elves - Barracks