After you make it through Elinee's Castle, Elinee sends Dyluck away and you learn of Thanatos's plan to overthrow the kindgom. Elinee sends Spikey Tiger to attack you.
Defeat Spikey
As soon as the battle starts, run around, because Spikey Tiger is about to land on you. Switch everyone to using long-range weapons such as the Bow, Boomerang, and Spear. You should set your other characters to attack Spikey Tiger but keep away.
If anyone gets hit with a spell that causes prolonged burning, use the medical herb to cure the ailment. Remember that you can switch to another lead character by pressing Select.
Heal anyone whose HP goes below 40.
After the battle, go south and step on the tiles to warp back to the castle. Go south and talk to Elinee. She transforms into her true form, an old woman. Her previous form was made possible by the magical herbs in the Haunted Forest, but they have withered. She had been delivering villagers to Thanatos in exchange for herbs, but she has realized the error of her ways and will stop her evil deeds. She tells you to look for Dyluck in the Pandora Ruins.
Elinee reveals chests to the right. She says that in order to enter the underground palace near the Dwarf Village, you need to use the magic of ice on the orb that seals the entrance, but Elinee has no magical power left. Open the chests to get 50 GP and the Whip.
Now leave the castle. Primm will have an emotional moment. Then Luka will ask you to come to the Water Palace.