The village of Phandalin sits at the western edge of the Sword Mountains foothills, approximately 10 miles south of the Triboar Trail.

Phandalin was resettled in 1422 DR, Year of the Advancing Shadows, by residents of nearby Neverwinter. The village took in refugees fleeing the destruction of Neverwinter during Ruining, swelling it from a tiny hamlet of a few dozen people to village of respectable size.