We describe how to find an item for Karlach so Dammon can fix her Infernal Engine.

Where to find Karlach?

You’ll find Karlarch in Act 1 of BG3, at The Risen Road.

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After the fight you should find a toll house, where you’ll meet paladins hunting for Karlach.

How to recruit Karlach?

She’ll ask you to help her kill the paladins, who she claims actually serve demons.

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you might add her to your party and go kill Anders together.

After defeating the paladins, return to your camp, where Wyll will likely confront you all.

you’re free to convince him not to kill Karlach.

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Who can help Karlach fix the Infernal Engine?

The engine is malfunctioning and overheating.

This begins the quest The Hellion’s Heart.

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Dammon can indeed help Karlach, but he’ll need Infernal Iron to fix the engine.

Where to find Infernal Iron?

The first one is the easiest to find - just reach the Blighted Village.

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you could do so soon after visiting the Druid Grove.

The Blighted Village is a large location holding many goblins (and a gnome tied to a windmill).

You’ll surely notice a chest above a ladder (watch out for the trap).

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The Infernal Iron is within this chest (pictured below).

If the ladder breaks, you’ll need to jump up there.

This goblin is one of the three leaders.

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Alternatively, you’ve got the option to steal the key, albeit this won’t be easy.

Infernal Iron in the Underdark, Duergar Camp.

Give the item to Dammon the next time you see him, and he’ll fix Karlach’s engine.

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Baldur’s Gate 3