Paladins have an innate ability to cast holy magic such as curatio, and bless. They also have the ability to imbue their weapons with the Holy Explosion ability, which will let them do additional damage. Because of the metal armor that the paladins are wearing, they are very vulnerable to Lightning attacks, but will not quickly succumb to melee damage. The paladins are more powerful than most infantry units, but not as powerful as Knights.
Holy Infantry slightly less effective than Knights in melee combat. Paladins can cast holy magic to heal allies and damage undead units including ghouls.