If your entire party is defeated, the encounter ends after the current round, unless the party triggers its guild assist. Treat a full party defeat as a failed encounter and follow the steps below:

1. Place the party token in the closest town to the party’s current location on the overland map.

2. Resolve the Reward Phase.

3. Resolve the End of Day Phase’s Adventurers Rest step as normal. If playing on Expert difficulty and the full party is defeated, adventurers heal for 1 HP even if they do not discard an item (but still must discard an item to recover a die from their cooldown track).