Each creature has a base morale level that affects whether it fights or runs during a battle. The only character that is unaffected by morale is the first character you create - other characters joining your party have morale dialogue and scripts. Every creature is scripted to react somewhat differently when morale breaks - and often they will break at different levels of morale, or choose different types of attack depending on what the current morale level is (melee if morale is high, ranged attacks if morale is lower, for example). Each creature has a recovery time which indicates how long it takes for that creature's morale to return to its base level - if someone's morale fails, it will slowly creep back to the baseline. If someone in your party fails a morale check their selection circle will turn yellow (from green). Morale is positively influenced by having a leader (the topmost character in the portraits) with high Charisma, by the environment that the creature is located in (e. g. kobolds and drow like being underground more than they do wide open spaces outside), by some spells (e. g. Remove Fear), and by the type of enemies that are visible (easy enemies will raise morale). Morale is negatively influenced by factors such as being attacked by powerful magic, by seeing someone in the party killed or knocked unconscious, by losing a lot of hit points, or by spotting a difficult foe.
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