From that point on, things get a little tricky from a guide standpoint. We have a fair number of militia fighters, but they aren’t as strong as the knights. They are generally in better archer positions though. Lloyd will also be here, but he really likes to run out of the barricade and get himself killed. He’s portrayed as a cowardly jerk, so no real loss. The battle gets a little random besides this, though. Ideally, you need to save them all. You’ll get a nice helmet if you do, but it’s not worth the pain of a few reloads to get it perfect. It’s much easier to keep all of the nameless NPCs alive if you have a mage in your group who knows how to heal. They can heal allied NPCs, so just pause occasionally and check the health of the militia. You can just hold down TAB to do this for the big group.

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Other than that, it’s just like the first fight. You need to keep your group in the rough center of the little fort and attack the walking corpses as they come into the fight. The militia are pretty good with their bows, if you can keep them alive. This means rushing to the aid of an archer who comes under attack. The swordsmen can hold their own for a brief bit, but archers are in real danger.
The good thing about the fight is that you should be able to keep everyone in your party alive. I only had to keep an eye on Sten and make him drink a poultice once. You might have to watch your mages though, since running out of mana isn’t out of the question. Talents should be safe though, since the walking corpses trickle in and give you plenty of time for cool downs to wear off.
Once you’re up a bit in level, you can do a lot more. This should be enough for handling it on a first playthrough though. Just like before though, the fight with the walking corpses might not end. This means that a walking corpse is stuck somewhere. Just walk out a bit to either trigger the script or find it. Then kill it to end the battle and get a loading screen.
You should receive your rewards here too. Any survivors can be seen around the village and talked to for a little debriefing. Your next stop is the castle. Talk to Bann Teagan when you’re ready to charge the castle.