Cyan Garamonde is a longtime veteran of Doma and you get control of him outside. The Doma Sentries won’t be able to keep them out, but a new character steps forth. Turns out the imperial army is storming Doma. You’ll be at an Imperial Base eventually where you’ll have to keep a low profile. Instead, go east a little and then south. You can walk a great deal west if you’d like, but it’ll still take you to a dead end.
More on this later, but you can sleep in his bed if you want! For free even. Inside the house is a crazy old man who speaks of a son he banished to the Veldt. The merchant has some nice things, especially at the bottom of the list (for Shadow). You are to head through Doma to get back to Narshe. He’ll join you but will mention that he’ll leave at any time. You’ve met Shadow before (not with Sabin consequently). Go to the house you see right away and you’ll see Shadow and a merchant. You don’t have to choose Sabin first but I do, generally because his is longer and more interesting (in a new area with new characters no less).