A former stronghold established in the Stone Tooth by Durgeddin Stonehammer, Khundrukar fell in the Smith's War. In the after the great battle, various creatures such as Orcs, Ogres, and Troglodytes occupied the fort, using it a base for their raids in the Forest of Stone Tooth. At other times, the caverns remained empty, save for the mindless and bloodthirsty monsters that haunted such places. Legends of the extraordinary blades forged in anger still surfaced from time to time in the lands near the Stone Tooth. This drew parties of adventurers over the years, eager to find magical items of great power.
Khundrukar was made up of four levels: the Dwarf-Door, a natural cavern improved on by Durgeddin's folk intended to guard the chambers and protect the entrance to their realm; the Glitterhame, a series of natural caverns that sparkled with flecks of semiprecious stone; the Foundry, where most occupants had worked and lived in masterfully carved halls and chambers; and the Sinkhole, where a lower level of caverns contained storage and a subterranean river connected with the Black Lake.