The MM8 Tavern
Original Message:   Yes, dismissed characters keep their stats...
Dismissed characters keep their stats, skills, equipment, inventory, spells, awards, promotion level - everything. I'm not aware of any penalty for dismissing and rehiring characters, and I've done it several times.

The characters that you send to the Adventurer's Inn are also good for storing stuff long term. I loaded a few up with a bunch of artifacts that I...um...borrowed from secret rooms in certain high-level dungeons. Just rehire them again whenever you want to get your stuff back.

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