The Battle of Sheep Island was really only a skirmish between two very small forces, but it ended the occupation of the island by Ogre Raiders and allowed Garon, Lord of Sheep Island, to reclaim independence from the Realm of Azmar so it is an important event.

The battle took place in the third year of the reign of the Dwarven Princes, Noreg of Stondar and Yarl of Azmar.

Lord Garon had tried for over a year to get Prince Yarl of Azmar to assist him in driving the Ogre Raiders off of Sheep Island. Even though a colony of Azmarian dwarves had been massacred there by the ogres, Prince Yarl was unwilling to do so. It was believed that not only was Sheep Island held by a strong force of ogres, but that the dragon Zern might be there as well.

Lord Garon next approached Prince Noreg of Stondar to request assistance. Noreg said his Army of Stondar could easily retake the island, but that if they did so, he would annex Sheep Island as part of Stondar. Lord Garon sought to regain the independence he had prior to the Ogre Wars so he declined this offer.

Lord Garon next set about forming his own army. On the outskirts of Stondar City, he met with some of the most powerful of the humans and elves of that era: Allort, the elven wizard, Thaero, High Ranger of Azmar and Beepe, senior priestess of the Fellowship of Kraylus and leader of The Soul Guild. This group again sought assistance from Prince Noreg of Stondar and received the same offer. They also spurned this offer.

Then, together with another human adventurer named Gerran, they assembled at the Stondar City Harbor and set off on the ship Golden Link for Sheep Island. Arriving on the island ready for a fight, they discovered that the island was completely abandoned. The ogres had left and there was no sign of the dragon. Lord Garon found that the Azmarian colony had been destroyed, his sheep were all gone and his house had been ransacked. Lord Garon thanked those who had come to fight on his behalf, gave each of them a parcel of land on Sheep Island and obtained from each of them a recognition that he was the Lord of Sheep Island and a pledge to help defend it.

A week later, after Lord Garon's army had dispersed, the Ogre Raiders returned to Sheep Island and Garon fled to Worfin Village and then Stondar City where he immediately attempted to reassemble his army.

Lord Garon was at first unable to find any of his allies, but over the course of several days, eventually managed to locate Thaero and Beepe. The absence of the wizard Allort was a major problem and Lord Garon was unsure if they should proceed. Then, a human adventurer named Jewfro offered to join the effort and Lord Garon decided that they should at least go to Sheep Island to scout out how many ogres were there and whether the dragon was with them. Thaero brought with him a tamed wolf named Kryon.

Arriving on the island, the group proceeded to Lord Garon's house finding again no opposition. They moved up to Sheep Hill, finding it deserted, but from there they could see the woodland valley below Tower Hill and there they saw an ogre camp. Since there were only three ogres there and no sign of any other foes, Lord Garon was persuaded that they should attack. They descended the hill and approached the ogres. Thaero approached closest and an ogre saw him and called an alarm to the others. The ogres rushed towards Thaero while Lord Garon and his fighters attacked the ogres. Thaero fell and his loyal wolf Kyron fought to keep the ogres from finishing him off. Then, suddenly, a strange magical disturbance interrupted the battle. In the blink of an eye it was as if time itself had rolled backwards. It was as if the battle had never happened and Lord Garon and most of his army were back on the docks at the Stondar City Harbor.

Lord Garon thought the event might have been a flickering of the Eternal Flame or possibly some magic that was protecting the ogres from defeat. His supporters urged a renewed attack. Lord Garon ralllied his army again and they set off once more. Thaero, Beepe and Jewfro were again with him, only Kryon the wolf did not return for the renewed attack.

This time Lord Garon urged that a greater effort be made to attack the ogres one at a time. Also, his force approached from the direction of Tower Hill this time while the ogres were looking for further attacks from Sheep Hill. From the top of Tower Hill, Lord Garon could see that the ogres were still in the same camp.

Moving around Tower Hill, Lord Garon's small army approached the ogre camp. Lord Garon went forward to lure an ogre into an ambush. This succeeded, but Lord Garon was badly wounded and Beepe was so badly wounded that it was thought at first that she was dead. Beepe used her legendary healing abilities to heal herself and Lord Garon. This took some time, but eventually they were ready to attack again. Having lost no one, healed their wounds and cut the size of the enemy force by a third, Lord Garon's fighters attacked again with higher morale, optimistic that they could achieve victory.

A second ogre was lured out of its camp and foolishly did not call out an alarm. It was quickly cut down. Then, Lord Garon's army charged into the ogre camp and slew the last ogre. Lord Garon and his small army had slain three Ogre Raiders and not lost any of their own warriors. Lord Garon celebrated his victory. He had already given each member of the army land except for Jewfro, to whom he had given only a battle axe. Jewfro was then given land on Sheep Island as well.