The quest called "The Search for Dawn Star" begins once players emerge from the cave beneath Two Rivers School and talk to Master Li. The conversation is interrupted by the arrival of Jing Woo, who reports that Dawn Star cannot be found anywhere, and that her quarters show signs of a struggle. Master Li says that "this may prove useful", and tasks the player with finding Dawn Star. He suggests that since she does not appear to be in Two Rivers anymore, the player should consider searching the surrounding marshland.
When players leaves the school and enters the village proper, they find that Student Si Pat, who had been tasked with guarding the gate, has been killed. His corpse is still smoldering, and villagers who saw the attack say that Gao the Lesser killed him using fire magic. They report that Gao was dragging a large sack with him, and was heading towards the gate out of the village. At that gate, the player finds that Guard Yung has been knocked unconscious and that there is a band of Gao's mercenaries waiting for them. The player can either fight the mercenaries, or intimidate them into leaving. Once this is done, Guard Yung is revived and says that Gao left Two Rivers heading for the swamp.
In the swamp, the player will encounter Sagacious Zu, who initially declines to become involved but changes his mind after players mention Dawn Star's name — if questioned on this, he simply says that although the player might be foolish in venturing into the swamp, Dawn Star is unlikely to have deserved her fate. He mentions a camp of Gao's mercenaries to the north. When the player has defeated the small mercenary band found there, a survivor says that Dawn Star fled into the nearby cave and Gao pursued her. The player can choose to let the mercenary live or to kill him.
In the cave, the player sees Gao defeating an Ogre and pursuing Dawn Star towards the back of the cave. After fighting their way through more ogres and a Toad Demon, players will confront Gao, who is not pleased to see them. Gao says that he is the only one who understands what is going on, and that Dawn Star should actually be thankful towards him. He then attacks. Once Gao is dead, Dawn Star thanks the player.
Outside the cave, a fleet of flyers passes overhead, and it is realised that this might be what Gao was referring to. It is decided to use Gao's Amber Mosquito flyer, which is parked in the camp, to hurry back to Two Rivers. This automatically launches the last of the three main quests for Chapter One, Quest: The Burning Town.
- First assigned: "Your discussion with Master Li about your people, the mysterious Spirit Monks, was interrupted with news that Dawn Star has disappeared."
- "Find Dawn Star: Master Li suggested that Gao may have taken Dawn Star to the marshes outside the school. Make your way toward the town gate."
- Left the school: "Your discussion with Master Li about your people, the mysterious Spirit Monks, was interrupted with news that Dawn Star has disappeared."
- "Find Dawn Star: It seems clear that Gao is involved in Dawn Star's disappearance. He was last spotted heading for the town gate."
- Defeated the mercenaries at the gate: "Gao the Lesser left several men in ambush for you near the town gate. After you dealt with them, Guard Yung confirmed that Gao had already left town."
- "Pursue Gao to the Marshes: Gao is headed for the marshes outside of town. He must be stopped."
- Defeated the mercenaries in the swamp: "One of Gao's men in the marsh told you that Dawn Star escaped and led Gao pursued into a cave just north of their encampment."
- "Rescue Dawn Star from Gao: Track down Gao, and make sure Dawn Star is all right. They're in a cave at the north end of the marsh."
- Quest completed: "A pall of smoke in the distance served as a grim landmark as you made your way back to Two Rivers."