A garrison unit can only choose to Hold or Stand and Shoot, it cannot choose to Flee! – it would take far longer for the garrison to exit the building than for the enemy to flow around the sides and run the garrison down. Even a failed Terror test will not exhort a garrison to Flee! – it's better to face a mind- numbing peril with four solid walls around you! Accordingly, a garrison that fails its Terror test does not flee as normal, but is forced to Hold. It does, however, count as having automatically failed its Fear test at the start of the ensuing round of combat.
Source: Warhammer Fantasy: 8th Edition
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