The heroes kill Argesh, ending the Hands of Glory. Also, her first creation, Argesh, has set up the Hands of Glory, a thieves guild faction of the Red Fang Marauders.
She has been giving her creations to Lady Aragozia Firewind. At the manor, they learn that Luvia Bloodmire has been combining the body parts of various creatures in an attempt to make a new species. They trace the evidence to Bloodmire Manor. Upon entering Baldur's Gate all five need money, so Randalla hires them to investigate a series of murders in the city. There, they rescue the village from being sacked by the marauders and kill their hobgoblin leader, Harnak the Butcher. After infiltrating a nearby Marauders cave, and freeing the caravan guard Randalla (an NPC who also appeared in the first game), they head to Wayfork Village, a nearby fiefdom. Upon meeting on the Trade Way, they realize that ever since the collapse of Xantam's Guild (from the first game), the Trade Way has become increasingly dangerous due to the rise of the Red Fang Marauders, a goblin army.
As they journey towards the city of Baldur's Gate, fate brings Dorn, Ysuran, Borador, Vhaidra and Allessia together.