How do I clear the Dragon in Level 5 of the Endless Paths?
The Endless Paths is a 15 level optional dungeon of ever increasing difficulty. The bottom levels include some of the most difficult content in the game. It's possible to get further than you are at the level you're at -positioning and gear matters more than anything - but it's very difficult to do so, and really, there's no reason to force it. If you can't handle it now, come back later.
I did the following (I had a character that was a rogue).
Just before the room with the dragon, there is a room with a pool of blood. On the right hand side of this room there is a doorway. I placed my party inside the room on the right and had Eder (The fighter) inside the room with the pool of blood. I then snuck forwards with my rogue and did a sneak attach immediately on the nearest Xaurip (This draws the whole rooms aggro) I then invis'd (A rogue talent) and ran back to my party, I then moved Eder into the doorway to block the enemy from getting to my squishy priest and wizard.
I then used the first level priest spell "Withdraw" make Eder invisible (and heal him back to full). While invisible he can't take damage and he blocks the enemy from rushing at your party.
While he is invisible for 20 secods, attack the enemy with ranged weapons and spells.
Level 5 is a little low level to explore the endless path. I did clean all level to 6 while being level 10. I would recommend waiting a little as the reward is not really a top item. Instead, build the gardian lodge if it is not done and ask the gardian for primes. He will give you 4 people to kill and these fights will help you level up really fast before going back to the dragon. It worked pretty well for me.
If you are still trying to do it, my strategy against all strong opponents surrounded by weaklings is to make your party wait in a corridor where you can only be attacked by two opponents at a time. Then trigger the combat by sending a ranged weapon user attack the first enemy you see. The rest of the ennemies will line up to kill you but two at a time which makes the combat much easier. I use Eder and Kana as the tanks as they are pretty good once armored and shielded. Then Durance will heal them all the time while Aloth cast everything he's got. I also add a cypher and a ranger to arrow from behind or cast powerful spells on spell user backing up your opponents.
Do not forget to buy some good food to increase resistance and attributes. This should do it. It worked pretty well for Raedric that i fought from the door of his dead wife bedroom ^_^;