After a few rounds, she will eventually fly and land in the next area (Blood Cliffs). You can also put in some hits with a mage or an archer.
Standing behind the spire will protect you from this new wave of fireballs. The dragon will change her path when you are far enough in. The first fireballs will be coming directly above you so try to dodge them and get close to the central spire. Upon seeing your party she will start to periodically bombard you with fireballs. As you enter the initial area close to the camp (Lady Shayna's Valley), the dragon will circle around, destroying the top of the central spire by smashing into it. StrategyThere are four stages of the combat: