The Battle at Pannu Yakuta Castle was the first major battle of the Gate Rune War. It was fought between the Toran Liberation Army and the Scarlet Moon Imperial Army.
After Tir McDohl, Gremio and Kirkis had left Toran Castle for a reconnaissance mission in the Great Forest region, survivors of the Imperial attack on the former rebel base at Lenankamp arrived at the castle. This bolstered the restructured Liberation Army's numbers enough to engage in battle with the Imperial forces at Pannu Yakuta Castle.
Although outnumbered, dismissed by Imperial General Kwanda Rosman and entering their first battle, the Liberation Army managed to secure victory. Following the battle, General Rosman attempted to destroy the victorious forces with the Burning Mirror but was thwarted by the dwarves' Firewind Cannon.