Daggerdale was a small town in the northern part of the lands of Shadow. It was orginally known as a quiet place that was centerally located.

Daggerdale was known as a place that higher powered adventurers would gather staging adventures. Of note are it's thief guild (created by the retiring vethor) and Selune's temple adjacent to the eastern gate of the city. As time went on, the people of daggerdale became less accepting of the aggressive Selune presense. Citizens removed Selune's temple and forced them to set up outside the city.

Shortly after, drow and the Talosian Kiervalan Telkaror, a leader of the Torm army took a portion of it that was faithful to him and stormed daggerdale. The city is now a ruin that Kiervalan resides in with the ghosts of those who were massacared.

Many years later, around 747SG, a group of necromancers and shadowmages invited Nurval, the being and the city, to settle within ruins of Daggerdale.