Moon elves once lived in the Gray Forest several centuries before the 14th century DR. However, when hobgoblins and various other creatures began to encroach on their lands, the elves fought a losing war against them. They increasingly lost ground and some were driven out, but the rest were unwilling to give up their homes. The Gray Forest moon elves faced extinction. Thus, their last act was to transform themselves into grand gray-barked trees, so that they would never leave.
However, a population of wood elves remained in the Grey Forest. In the Year of the Dawndance, 1095 DR, they joined an alliance with the cities of Impiltur and the dwarves of the Earthfast Mountains. Led by War-Captain Imphras Heltharn, this alliance fought to repel the hobgoblin hordes of the Giantspire Mountains.
By 1372 DR, a new leader had risen to organize the hobgoblins of the Gray Forest. Some claimed he was a werewolf, others a vampire, and he was said to command dire wolves that aided his tribe in battle. 
A Cult of the Dragon base was operating in the Grey Forest. On Tarsakh 1, the Year of Rogue Dragons, 1373 DR, Maestro Taegan Nightwind, an avariel, informed Impiltur's Council of Lords and Regent-Queen Sambryl of the existence of this base and of a cell in the nearby city of Lyrabar. An Impilturan army marched into the Grey Forest after it, but on Tarsakh 12 it was routed when its own dragon allies were affected by the Rage of Dragons. However, the army rallied and with the aid of Vorasaegha, a spirit dragon, they attacked and destroyed the Cult lair on Tarsakh 16.
Hobgoblins also dwelled in the Gray Forest. In addition to their forest homes, they also kept lairs in the Earthfast Mountains.
The Cult of the Dragon had a hideout in the Grey Forest, which was destroyed by the Impilturan army in Tarskah, 1373 DR.
The sage Othla Multar theorized that drow occasionally emerged from a passage to the local Underdark in the neighboring Adhe Wood and crossed into the Tsurlar Forest. There they traded with pirate vessels that anchored in hidden coves.
Around 1371 DR, rumors of werewolves in the Gray Forest drew monster slayers and trophy hunters to Impiltur in search of exotic wolf pelts. However, one band couldn't find anyone to guide them, and so they idled in Hlammach.
By 1479 DR, elderly folk living outside the forest told a tale that there was once a great war between the elves (or "eladrin") and goblinoids of the Gray Forest, that wiped out both peoples. Only the circles of gray-barked trees remained to mark their presence. In this time, the Gray Forest was said to be haunted, and few people risked journeying inside it too long or too deeply. Those who did told stories of ghosts, strange creatures, and peculiar hills that mysteriously appeared and vanished again.
- ↑ 1.0 1.1 1.2 Steve Perrin (1988). Dreams of the Red Wizards. (TSR, Inc), p. 6. ISBN 0-88038-615-0.
- ↑ 2.0 2.1 2.2 Thomas M. Reid, Sean K. Reynolds (Nov. 2005). Champions of Valor. (Wizards of the Coast), p. 88. ISBN 0-7869-3697-5.
- ↑ 3.0 3.1 3.2 Brian R. James and Ed Greenwood (September, 2007). The Grand History of the Realms. (Wizards of the Coast), p. 153. ISBN 978-0-7869-4731-7.
- ↑ 4.0 4.1 Eric L. Boyd (1998). Demihuman Deities. (Wizards of the Coast), p. 15. ISBN 0-7869-1239-1.
- ↑ 5.0 5.1 5.2 5.3 Ed Greenwood, Sean K. Reynolds, Skip Williams, Rob Heinsoo (June 2001). Forgotten Realms Campaign Setting 3rd edition. (Wizards of the Coast), p. 202. ISBN 0-7869-1836-5.
- ↑ 6.0 6.1 6.2 6.3 Jeff Crook, Wil Upchurch, Eric L. Boyd (May 2005). Champions of Ruin. (Wizards of the Coast), p. 79. ISBN 0-7869-3692-4.
- ↑ 7.0 7.1 Ed Greenwood (November 1998). The City of Ravens Bluff. (TSR, Inc), p. 145. ISBN 0-7869-1195-6.
- ↑ Ed Greenwood, Sean K. Reynolds, Skip Williams, Rob Heinsoo (June 2001). Forgotten Realms Campaign Setting 3rd edition (Map). (Wizards of the Coast). ISBN 0-7869-1836-5.
- ↑ 9.0 9.1 9.2 9.3 Rob Heinsoo, Logan Bonner, Robert J. Schwalb (September 2008). Forgotten Realms Player's Guide. (Wizards of the Coast), p. 106. ISBN 978-0-7869-4929-8.
- ↑ 10.0 10.1 Ed Greenwood, Sean K. Reynolds, Skip Williams, Rob Heinsoo (June 2001). Forgotten Realms Campaign Setting 3rd edition. (Wizards of the Coast), p. 203. ISBN 0-7869-1836-5.
- ↑ George Krashos (August 2006). “Impiltur: The Forgotten Kingdom”. In Erik Mona ed. Dragon #346 (Paizo Publishing, LLC), p. 59.
- ↑ Ed Greenwood (November 1998). The City of Ravens Bluff. (TSR, Inc), p. 148. ISBN 0-7869-1195-6.
- ↑ Elaine Cunningham (May 2007). The Best of the Realms III (Answered Prayers). (Wizards of the Coast), p. 338. ISBN 0-7869-4288-6.