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“Aiming to avoid needless battles, the Altean army decided to cross the central mountain range, thought to be impassable by a large army. Should they go through the Adria Pass, they would reach the palace directly. "Hurry, we cannot let the enemy notice us! We must charge straight through!" Praying for success, Marth and the others walked through the narrow mountain pass. However, despite their prayers, they were attacked by an unexpected enemy in the pass. The northern Kingdom of Aurelis's elite force, which had moved south to aid Akaneia… The "Wolfguard."”
—Opening Narration

Battle of the Pass is Chapter 18 of Fire Emblem: Mystery of the Emblem and its remake.

The village on the south-west contains the Lifesphere AND signals retreat to the horsemen and paladin in the north, allowing you to spare the Wolfguards units for recruitment later. You can kill the generic units with them, however, with no consequence.

There is a secret shop selling Master Seal and Elysian Whip in this chapter. It's 5 squares to the east then 1 square north from save point.