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hey so im still kind of new to fantasy

and played today using VC for the first time, great fun but came along this problem didnt know what to do so just 4+ in the end.

I had a unit of zombies in combat with a horde of Big uns (orc unit) and I charged my mortis engine into the combat, he took a terror test and failed
but because he was already in combat for 2 turns with the zombie unit, we didnt know wether he had flee or what happened.
can someone solve this for me, as i couldnt figure it out from the book.

You cannot Panic if locked in melee, that's what Terror causes, so they would not test.

Keep in mind Terror still forces your enemy to take a Fear test every turn.

Once combat is joined, its just Fear. Except that it will cause Fear in models that cause Fear themselves.