Morale

Morale gives you a chance for an extra turn with an unit in battle.

The chance of getting a morale is equal to 1/24 * morale value. Note that this can be a negative as well, in which case the unit has bad morale, which causes your units to freeze and skip the turn.

Morale	% chance	Effect
-3	12.5%	Freeze
-2	8.3%	Freeze
-1	4.2%	Freeze
0	0%
+1	4.2%	Extra move
+2	8.3%	Extra move
+3	12.5%	Extra move

Base morale is what you get from having an army composed of units from certain towns. You get lower base morale the more towns you have units from in your army (Neutral counts as a town)- You start off at +1, and get -1 for each new alignment you add.(So if you have creatures from 3 town types, you have -1 as base morale). Bonuses for having Archangels and/or Undead are not counted here.

Gives good morale

• The Leadership skill.
• Numerous Artifacts (Crest of Valor, Glyph of Gallantry, Badge of Courage, Pendant of Courage, Still Eye of the Dragon).
• Mirth
• Archangels in your army.
• Numerous Adventure Map objects (Fountain of Youth, Temple, Oasis, Watering Hole, Buoy, Events)
• Good troops fighting on Holy Grounds and Evil troops fighting in Evil Fog.
• Defending in Siege battles (Tavern bestows your troops +1 Morale. Brotherhood of the Sword gives +2).

Gives bad morale

• Multiple units of different alignements and Undead units in your army.
• Fighting Bone Dragons or Ghost Dragons.
• Sorrow
• Good troops fighting in Evil Fog or Evil troops fighting on Holy Grounds.
• Spirit of Oppression (It negates Good morale, anyway)
• Events
• Visiting shipwrecks, crypts etc. where the guardians have already been defeated.

Golems, Undead and elemental creatures are immune to morale factors.

A hero's units have double the chance of freezing with bad morale than having a second attack with the same level of good morale. Not correctly documented in the manual. Also, morale modifiers are capped at +3 and -3.