Retreat

A hero may retreat from combat anytime it is his turn. Players cannot retreat if the hero is defending in a siege (unless he is in a Stronghold that has an Escape Tunnel) or fighting against an enemy hero wielding the Shackles of War. The hero will reappear in the Tavern ready for immediate re-recruiting and retain all artifacts but lose all armies.

Note: Even if your hero inflicted serious losses to the opponent, if you retreat from combat no experience will be gained from the battle.

Retreating (or surrendering) is a good idea

• When defeat is imminent.
• As a means to travel to a distant town, to be re-recruited there, however this is tactically unsound and costs 2500 gold (and the hero's current armies).
• To preserve artifacts which will otherwise fall into an enemy hero's hands.
• To preserve a powerful hero with strong stats, spells, or high level.