Disbanding is the act of demilitarizing units.
Disbanded units will return to the keep as peasants, and will add to the overall population. Siege Engines will eject their crew before disappearing, then the engineers will disband. When units disband, no gold or weapons are refunded. Peasants acquired this way will always move to the campfire first and they cannot be re-recruited or employed until they swore fealty for the lord.
In Stronghold 2 and Stronghold Legends, disbanded units disappear and reappear a few seconds later at the campfire. Decommissioned siege engines will refund the number of peasants that were required to operate the machine.
Disbanding a huge number of peasants can lead to overpopulation, which can disrupt a player's food supply due to the sudden rise of food consumption. Moreover, it can cause severe popularity loss in Stronghold and Stronghold Crusader, which leads to an eventual loss of peasants unless more hovels are built or the peasants are recruited in the army again.
"Are you sure, sir?" -Crossbowmen
"Fall out..." -Pikemen
"We're gone." -Archers
"We're off home" - Spearmen
"We are not needed?" - Swordsman
- Every military unit except for the lord can be disbanded in any game.