Xenoblade Chronicles/Frontier Village

Somethings wrong with Melia but she won't tell the group. First things first, this area has about a total of 9 levels like a tower. Anyway, go up and meet with Melia. Shulk remembers what Alvis said and realise that Melia is going to find and attack the Telethia. Chief Dunga overheard this and goes down to prepare a nopon hero that will join you in your team.

Meet Riki?
Perhaps its not explained earlier. Nopons is far smaller that your average Homs. Unusually, they grow up slightly faster than Homs but slower than High Entias. What they look like is a puff of teddy bears shaped like balls. So that's what a nopon is. Anyway, go to the bottom for a humourous moment introducing Riki that got hit by Reyn calling him a furball! Melia gives in and there's one more thing left, get Riki's gear from the two only shops and meet him at the exit. Don't forget to do sidequests or you'll have a hard time with the Telethia later on.

Beating the telethia
If you're done with the sidequests. Search around the map, watch out for higher level monsters and try to find the decayed forest which is also colorless when you first meet her. You'll be dealing with level 36 Leone Telethia with Shulk getting into the heart of Melia and relieving her of the trouble. Of course, Riki battles as well but the end cutscene sees him knocked off while the Telethia implode. Riki wakes up to round two but it's over already.

Your team will be back and Chief Dunga announces that Riki will join you in your journey. Clear up your armour, weapons and arts and join Melia at the top. Then your team will be transported to the next area: Eryth Sea.