Doc destroys Ivan's cursed pocket watch after rabbit Ivan causes problems between Doc, Merlin, Lexus, and Leo. Doc and Ivan's soul are sucked into a pocket dimension where they see a young man in a wheelchair talking to himself. Time reverses, spins forward, and resets repeatedly before they meet Malborh, the God of Time--one of the creators of this universe. Malborh explains that they originally gave the watch to a "very special mortal" and is angered that it was destroyed. They punish Ivan by banishing him from this universe, along with all of his items, so he can never return to this reality. Malborh states that perhaps they must have a hand in the fight for the Crown of Truth, in order to keep anymore troublesome "creatures" such as Ivan from causing chaos in their universe.
Afterwards, Doc is returned to the Mortal Plane on the airship. Doc pulls Leo aside and tells him everything about what he saw in the other dimension.
With Ivan, his items, and rabbit Ivan gone, the party is completely free of him.
The Empire Group Docks at Istrus, the City of Flight & Meet Scarlet
The Empire Group docks at Istrus, the City of Flight, in order to buy a new airship. The city has changed much in the last 20 years since Doc and Leo first visited. Istrus is now open to the public, but still swarming with the Empire's soldiers and guards due to it staying an important manufacturer of military airships and magitech.
The party leaves the skybarge they rented from the Florium Trade Guild here to be returned, and run into a half-Fae named Scarlet who can only speak in broken Common, as well as his fox friend named Radigan. Scarlet tries to explain that he is searching for people to help them kill a purple dragon from their home plane of existence--to which Doc agrees as long as they help the party on their quest first.
Merlin soon declares that he is too old to continue traveling with the party and leaves. Everyone meets the heads of the famous Enhancer Guild of Istrus, Panthea and Olus. The two teach Doc and Leo how to create miniature Eldtrich Cannons in return for their help finishing the gargantuan military-grade airship the party decides to buy (with Scarlet and the Emperor's money).
During the two days they spend working on the ship, Doc also helps Panthea finish the odd homunculus-like metal creature that she spent months trying to figure out for the Empire's military.