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New Sharandar is a settlement of elves and eladrin that straddles two realms, one on Toril and the other in the Feywild, on either side of an extra-planar portal. It is home to the descendants of the elven kingdom of Illefarn, offering them protection from the malevolent forces of the dark fey.

When the Spellplague fractured the foundations of existence on Toril, in the Year of Blue Fire, 1385 DR, the barriers between the planet in the Prime and the Feywild were weakened. Over time, the elven and eladrin descendants of Iliyanbruen uncovered a portal that connected the Neverwinter Wood to their ancestral home in the Feywild. They formed a new home for themselves, with fortifications on both sides of the portal, called New Sharandar, in honor of the capital of their lost home. After claiming their new home, many elves set out to restore the lost settlements of Iliyanbruen and repair the ruins of Old Sharandar.