Your objective now is to reach the nearby village.

There is a group of demons blocking the way. Go ahead and challenge them. With your new reinforcements, beating them should be trivial

The side of the battleground on which your creatures start depends on who attacked who. If you are the attacker, your creatures start on the left side. Here you are the one who were attacked by these terrible demons, so your creatures are on the right side of the battleground.

Don't forget that your hero can act once in every turn. Press either the attack button or the spellbook button.

Focus first on the stack of Juggernauts, once you kill them then turn your attention to the smaller monsters.

Besides their passive abilities, some creatures can also use active abilities during their turn.

When its the priestess' turn, press the heal active button on the left and select one of your injured creatures to be healed.

If you dont have a good action available for some creature, you can opt to have your creature defend and gain a bonus to defense.

Win the combat to begin a dialog:

Sveltana: May father sky light your way. I am Sveltana, Regent of the Griffin Duchy. This is Duke Slava, son of Pavel
Kraal: Nnn. May mother Earth give you strength. I am Kraal, Warchief of Whitespear clan from Redskull Island. How does Regent know Orc Greeting?
Sveltana: I know your customs better than you know ours. by what right do you cross our lands?
Kraal: Demon raiders attaked tribe, kidnapped powerful Shaman Elder Ulah. Demon leader calls himself Toghrul. "Pavel's Bane". Orcs follow trail to this place.
Sveltana: We know this is Toghrul. He caused as a great deal of grief. If you have come for his bones know that they were broken, cleansed, and scattered.
Kraal: Toghrul ah! Toghrul's spirit has returned twisted, corrupted by fires of Sheogh
Duke Slava: Warchief Kraal: We have a common enemy. Perhaps we should join forces?

After reading the rest of the dialog, continue in your journey towards the village.

The town is being attacked by demonic hordes. Double click on its entrance to fight the attackers and liberate the town.

heroes of might and magic VI town

Attack the demons. This group of demons is tougher then previous encounters, but should still pose no problem to your hero.

Make sure to boost your Sentinels with your hero's Stand your Ground spell that gives a stack one extra retaliation and increases its might defense.

Sometimes you will get a good morale message such as:
Your Sentinel have good morale. It means that they will act twice in the current turn. Note that during the second action they will be able to move less, and inflict less damage.

You can also press the wait button with any unit to tell it to wait and act later that turn.

After this battle, you should be leveling up if you havent already. It will say that your hero has leveled up. You will also gain an ability point. All the hero's damaging, healing, summoning and absorption spells have become more powerful. You can spend your ability points in the ability tree.

This completes the objective and the Demon Sightings quest.