Palla and Catria appear as NPC. Get them to survive the battle, then they join your party in Zofia Harbor.
Talk to Palla and Catria at Entrance and they join your party. Catria will be one of the main unit due to her very nice base stats and growth rate.
Mountain Graveyard (Battle)
Battle against Terrors.
Forgeing your weapons!
You can strengthen your weapons by spending silver/gold coins.
Atlas joins your party here! He is the only "Villager" in Celica's party.
Weary Woman asks you to find Son's Diary. That can be found in Dragon Shrine. Once you bring it to her, she dissapears. Get out of the village and re-enter to receieve rewards. Silver Coin x50 and 100 Renown are rewards.
Rustic Lumgerjack asks you to hand over an axe that you find in Mycen's House. Wooden Bear is reward. After giving him an axe, he also requests you to find Wooden Duma. No reward, but Wooden Duma is not handed over.
Give Fish-Loving man Dried Shieldfish. You'll receive Sacred Cheese and 100 Renown as rewards.
Desert Fort (Battle)
Wolf is very tought to beat if you play hard mode. Get him out of the fort and use Celica's Angel to defeat him.