Shamans heal your troops when they use their magic axe attack. This can be very nice, say for instance 460 healing on a Black Dragon. No, they don't need to kill the stack but it does need to be the axe attack, not melee.
Shamans are among the best and most unique units in the game. The totems are mainly used as bait for the enemy. You do need other strong units to cause most of the physical damage, but these are tough guys that don't die easily.
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