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- At the Council of Axe and Arrow, the Kingdom of Phalorm is founded in northwest Faerûn in response to increasing orcish power. The elves of Ardeep, the dwarves of Dardath, the humans of Delimbiyran, the gnomes of Dolblunde, and the halflings displaced from Meiritin unite in the Realm of Three Crowns. Ulbaerag Bloodhand rejects the invitation for Bloodhand Hold to join the kingdom.
- Phalorm lays claim to the High Moor and commences construction of a chain of fortresses along the western border with the Serpent Hills.
- Aided by an alliance with a dozen spirit naga, the dark naga Nejizar takes power over the serpentfolk of the Serpent Hills. Their aims are hindered by Phalorm's expansion.
- The Starym moon elf clan returns to Myth Drannor and re-establishes itself as an important house without Josidiah Starym.
- Lord Illitran Starym leaves Myth Drannor on a Cleansing March, which has the aim of purify his spirit and preparing him to wield a moonblade. However, he journeys to an abandoned temple of Moander and makes a pact with the imprisoned Rotting God that allows him to draw the blade without its retribution.