Morale

Rating	Chance	%
+3	1/8	12.5%
+2	1/12	8.3%
+1	1/24	4.2%
0	0	0%
-1	1/12	8.3%
-2	1/6	16.7%
-3	1/4	25.0%

• 
  Treason
• 
  Awful
• 
  Poor
• 
  Normal
• 
  Good
• 
  Great
• 
  Blood!

Morale represents troop stack's willingness to fight. High morale can allow creatures to receive an extra attack during combat round, while low morale can cause them to freeze and lose the turn. Good morale is received after the troop stack has acted, which means that the creatures will have a chance to act again immediately. Bad morale happens at the very beginning of creature stack's turn, and causes them to "freeze in panic".

The morale value of a creature stack can vary from -3 to +3. The game manual erroneously states the probability of receiving good or bad morale is equal at 1/24 (4.17 %) times morale value. As shown in the table on the right, it is more probable to receive bad morale than good morale. The troop stack's morale value is mainly determined by army's morale rating, which acts as a bonus to the individual morale of its troops. Thus the creature stack's morale can differ from hero's army's morale. Army's morale can be affected in various ways, which are listed below.

Golems, Undead and Elementals are unaffected by morale, meaning that their morale rating is always zero.

Morale affecting features

Adventure Map locations:

• Buoy increases morale +1 until next battle
• Crypt decreases morale -1 until next battle, if the Crypt has already been plundered
• Cursed Ground negates all positive morale.
• Derelict Ship decreases morale -1 until next battle, if the ship has already been plundered
• Evil Fog  increases morale of evil aligned creatures by +1 and decreases morale of good aligned creatures by -1
• Fountain of Youth increases morale +1 until next battle (and gives +400 movement points)
• Holy Ground  increases morale of good aligned creatures by +1 and decreases morale of evil aligned creatures by -1
• Idol of Fortune increases morale +1 until next battle on even days (+1 to luck on odd days, and on day seven gives both luck and morale +1)
• Temple increases morale +1 until next battle, or +2 if visited on day seven
• Oasis increases morale +1 until next battle (and +800 movement points)
• Rally Flag increases morale +1 and luck +1 (and gives +400 movement points) until next battle
• Shipwreck decreases morale -1 until next battle, if visited after the guards have been defeated
• Warrior's Tomb decreases morale -3 until next battle
• Watering Hole increases morale +1 until next battle (and gives +400 movement points)
• Events may increase or decrease morale from -3 to +3.

• Grave decreases morale -3 until next battle after being dug up. 

• Temple of Loyalty removes all morale penalties for having creatures of varied alignment in the army until the next turn. 

Artifacts:

• Badge of Courage increases morale +1
• Crest of Valor increases morale +1
• Glyph of Gallantry increases morale +1
• Still Eye of the Dragon increases morale +1 (gives also +1 to luck)
• Pendant of Courage increases morale +3 (gives also +3 to luck)
• Spirit of Oppression negates all positive morale.

• Ring of Suppression decreases enemy's morale -1 

• Hideous Mask decreases enemy's morale -1 

• Pendant of Downfall decreases enemy's morale -2 

Buildings:

• Tavern increases defenders morale by +1 when defending against siege.
• Castle's Brotherhood of the Sword increases defenders morale by +2 (in addition to Tavern) when defending against siege.
• Castle's grail building Colossus increases owners all heroes' morale by +2.

Creatures:

•   Angel and Archangel increase morale of the army they are fighting for by +1
•   Bone and Ghost Dragons decrease morale of the enemy army they are fighting against by -1.
•   Minotaur and Minotaur King always have morale value at least +1.

Secondary Skills:

• Leadership secondary skill increases morale by +1, +2 or +3.

Spells:

•  Mirth increases morale by +1 or +2.
•  Sorrow decreases morale by -1 or -2.

Miscellaneous:

• If all creatures fighting in hero's army are from the same town type, their morale is increased by +1.
• If creatures fighting in hero's army are from three different town types, their morale is decreased by -1.
• If creatures fighting in hero's army are from four different town types, their morale is decreased by -2.
• If creatures fighting in hero's army are from five different town types, their morale is decreased by -3.
• If creatures fighting in hero's army are from six different town types, their morale is decreased by -4. (the game erroneously says it is -3)
• If creatures fighting in hero's army are from seven different town types, their morale is decreased by -5. (the game erroneously says it is -3)
• For purposes of mixing units from different town types and its effect on morale, Neutral creatures are counted as all belonging to their own, separate town.
• Living creatures in a hero's army have their morale decreased by -1 if the army contains any Undead units.

Trivia

In the game files, Morale variable values have names: Treason (-3), Awful (-2), Poor (-1), Normal (0), Good (+1), Great (+2), and Blood! (+3). This is most likely a leftover element of Heroes of Might and Magic II: The Succession Wars.