When confronted by enemies, the game will switch to Combat mode.
If there is more than one enemy, the HP of each will be shown separately, but only one enemy will be shown on screen.

When Combat mode starts, you must select a battle command for each member of your party. Press up or down and ( for Classic Controller) to select a command, or ( for Classic Controller) to cancel and make a new selection. Once a selection has been made for each character, the battle will commence allowing each character and enemy to attack once in a single round.

If the battle has not been decided after everyone takes an action (including your foes), the Combat Menu will appear for the next round of commands. The battle ends when the HP of either side is reduced to zero, or by running away.

In addition to EP, enemies will leave behind Treasure Chests, which you can open. These may contain Mesetas and sometimes items. Beware though, as some Treasure Chests are booby-trapped!

ATTK (Attack):
If this option is selected, the character will attack one or several of the enemies with their equipped weapon.

MAGC (Magic):
Characters capable of Magic can cast a spell instead. Select the spell to use, and in the case of healing and curing, select the character the spell will be targeted at.

Note: Some spells can only be cast out of combat.

Use an item. A list of the items that can be used during combat will be displayed for selection.

Sometimes diplomacy can prevent combat. You may like to try reasoning with the enemy before fighting them.

Retreat from combat. Be careful as some enemies won't let you run, and you can lose your chance to defeat them.