The Blue dragon, apparently satisfied with its snack, flaps its wings and takes off. You kind of get the impression it didn’t actually want to fight you, it just want to eat something and once again took to the skies resuming its, now that you’ve observed it up close, almost lazy pattern of flight around the skies over the town.
OOC:
Those of you that failed the saving throw became frightened of the dragon but that fear wears off about a minute later.
Also, it is just after 9pm and the sun is down. The only light is from the moon and the odd fire that seems to have been set by the towns invaders. Everyone will have disadvantage on perception checks and passive perception will be at a -5 for all (including npc’s)