In this mission, you have to defeat Iago to complete the battle. The main hall has a launcher and Fire Orb. The dragon vein in the same room is one-time use only and it destroy all the weapons of all enemies standing in the room.
There are also four chests that can be looted here, two on each side. Here are the contents:
Western Room:
Eastern Room:
On each of these treasure rooms, there's one enemy carrying one chest key only so make sure to bring at least two units capable of opening these chests. Also, there's a considerable number of armored enemies here so bringing in your Armorslayer and Sting Shuriken can help take out enemy generals in one blow.
First, take out the strategist and the nearby generals protecting him. Now don't spread out your group immediately. You can send a paired unit or your tank(s) to lure the nearby enemies while your main group stays put. This will allow you to wipe them out without endangering your other units because of the enemies' pre-emptive attacks.
At the start of Turn 2, a bow knight and great knight will arrive from the SW. You can divide your group now into two, going on both directions. It is recommended doing this since if you head north through the middle then split your forces to clear out the treasure rooms, you'll be surrounded on both sides. On the third turn, another Great Knight and a Dark knight will arrive from the SE entrance.
At the 6th turn, enemy reinforcements will appear in the western treasure room then on the 7th turn, a couple more enemies will appear in the eastern treasure room. Take note that both treasure rooms are within range of the fire orb and launcher so get ready to heal or rush the enemies in the main hall. After taking control of the fire orb and launcher, you can now use it to your advantage.
After looting the treasure rooms and with the contraptions under your control, regroup in the main hall and start luring the enemies on the stairs. Like most bosses, Iago won't budge from his position until you get to his attack range. Engage him when you're ready and finish him off to complete the mission.