Legend has it that a powerful source of magic was found centuries ago in the Sword Mountains. In this cave was built the Forge of Spells, where an alliance of humans, gnomes and dwarves crafted powerful magic items. The town of Phandalin was founded to support those involved.

Wizards and orcs sought that power and fought for control of it, but almost all were killed in the battles and resulting cave-ins. The cave’s location was lost to the ages.

The dwarves Gundren and his brothers are exploring the area in an attempt to re-discover the lost Forge.