The First Battle of Damcyan is the destruction of the kingdom of Damcyan at the hands of the Red Wings, the elite air force of the kingdom of Baron, in the latter's quest to obtain the four elemental Crystals.
Golbez has become the commander of the Red Wings, which under his leadership has become a far more ruthless military organization. Commanding the assault on Damcyan, he stops at nothing and the castle's inhabitants are nearly exterminated.
The raid begins with a massive airstrike, with the Baron air force carpet bombing Damcyan castle without any prior notice. The castle is then swiftly stormed by ground troops, killing most surviving soldiers and civilians and seizing the Fire Crystal. The Red Wings then pull out, leaving Damcyan decimated.
Tellah's daughter Anna dies protecting her boyfriend Prince Edward Chris von Muir, who also loses his parents in the raid. The death of the monarch theoretically makes Prince Edward King of Damcyan, but at the moment he is too disheartened to assume that position. Tellah's reaction to his daughter's death is to leave the party and go on a hopeless personal quest to singlehandedly slay Golbez.