This page has information about dying in battle in Xenoblade Chronicles: Definitive Edition (XC1). Not sure about what penalties await you if a high level Unique Monster one shots you? Read on to find out!
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In the event that you fall in battle with no bars in your party gauge, you won't game over or anything, just simply get sent back to the last landmark you were at. There are no actual penalties to death other than possibly having to retrace your steps if you were pretty far away from a landmark. This only applies to the party leader, however. If another party member goes down when you have no party gauge, they just can't be revived until you have a bar to spend.
If you or another party member falls when you have at least 1 bar in your party gauge then revival is possible! Keep this in mind before using Chain Attacks as they can leave you with no party gauge left to use if you or someone else gets knocked out.
Beginner's Guide to Xenoblade Chronicles: Definitive Edition
What Happens if You Die?
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