The Luminescent Adra Shard is on the altar at #5. Click on the large crystal at #6 with the Luminescent Adra Shard in your possession, and the shrines in a ring around the crystal will become active. That means you can now pray to the Gods.
The Shrine to Hylea is at #7. Pray with the words, "Live every note of life's song." Hylea will respond with a vision that ends with the words, "Restore my Temple."
Priests of Hylea named Casfath and Onwen will be at #7 on the map of Oldsong. If Hylea herself did not previously give you the quest when you were in Teir Evron, then Casfath and Onwen will.
You will encounter the Sky Dragon at #5. There are two distinct possibilities.
You may agree with the Sky Dragon that it should be allowed to remain at the Temple to raise its young. Coming to this agreement requires that you avidly avoid even the faintest suggestion that she leave the Temple, or that Hylea objects to her presence in the Temple. The Dragon will then let you leave in peace. *Note* Keep in mind that if you do things this way, it may be a little more challenging to persuade Hylea to grant you her favour when you speak to her again.
Another possibility is to pick a fight with the Dragon. One of the dialogue options that accomplishes this will increase Passionate disposition. If you are going to fight the Dragon, keep in mind that it can be a very tough fight. The Dragon itself can inflict significant damage on multiple party members with its fiery breath weapon. It also has an attack that resembles Druidic spells that both inflict Shock damage and stun targets, but with a much wider area of effect. It can also use this attack multiple times in succession to keep the party in stun-lock. It has high damage resistance to almost everything. It will have complete immunity to Freezing and Corrosive damage, but may be vulnerable to slashing damage. It will be helped out by several Wind Blights and Water Blights.
As for the Dragon herself, there are a few approaches. One is to use the trick of equipping both a shield and another item that both provides +50 to all defenses on Prone or Stun on a character, casting Withdraw or Beetle Shell on that character, and then having the Cipher use Defensive Mindweb to put everyone's defenses through the roof.
Also, given its resistances, single-target attacks that inflict Raw damage are highly recommended. Examples include the Cipher's Detonation power, as well as the Wizard's Ninagauth's Killing Bolt. Concelhaut's Crushing Doom is also very good at keeping even Dragons in a perpetual state of Stun.
Also, keep your characters spread out to avoid all of them getting caught by the Dragon's breath weapon.
It is of course adviseable to have your tanks on the Dragon from the word go, while other characters come in after the initial engagement, but keep in mind that the tanks themselves may be in real danger over the long haul. So it may be recommended to keep them stocked up on Potions of Major Endurance and the like.
If you killed the Dragon and informed Casfath and Onwen of such, they'll reward you with 7,000cp and leave. They can thereafter be found near #5 in the Temple of Hylea.
Completing the quest involves going back to the shrine of Hylea at #7 on the map of Teir Evron and informing her of your success. She will be a bit bothered if you had let the Sky Dragon live. It will still be possible to gain her favor as long as you emphasize that the Sky Dragon may herself be a worthy inhabitant of the Temple, and avoid any suggestions that the Sky Dragon earned the right to occupy the Temple by right of force or death. It will be even easier to gain Hylea's favor if you had killed the Dragon.
However you deal with the Sky Dragon, Hylea will thereafter request a boon of you. She will help you to reach Thaos for your final confrontation, but afterwards, will want you to return the souls taken by Thaos to bodies of the children the souls were taken from. You do not have to commit to this right away, and can in fact make it clear that you may want to hear what other gods will want and offer in return so as to keep your options. If you accede to Hylea's request in preference to requests made by the other gods, that will in turn conclude the Council of Stars quest and you will receive the Hylea's Boon (+1 Perception, +1 Lore) talent.
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