The ancient homeland of the dark elves of Hyerune is Morthindol, the City of Gloom. The city lies deep in the vast underground world known commonly as Darkhome, a seeminly infinite network of tunnels, caverns and passageways the run throughout the globe. The city itself is said to lie somewhere far beneath the Rushwind Mountains of Aldaria.

The city consists of a series of interconnected caverns, the largest of which is just under a mile high and several miles across. This main carvern contains an emmense crystal and fungi forest which the dark elves harvest for food. Rothé herds slowing work their way about the cavern grazing on the fungus and lichen grows amid the dark elf herders. The walled city proper, located in a defensive upper side cavern, is home to roughly 11,000 dark elves and 2-3 times that number in slaves and visitors.

The dark elves of Hyerune worship Sheolba, the Demon goddess of shadow and it is her high priestesses that hold a great amount of political power within the city. There are always 33 Noble Houses and the Matriarch of the First House holds the title of Grand Matriarch and rules over the Dark Elf Ennead (the ranking top nine noble houses). As dark elves are chaotic evil by nature the lesser houses spend much of their time plotting and scheming to increase their own status among the other nobles. Assassination and murder are quite common. In fact, the only real law is "Don't get caught." Great rivalry exists between the first two houses- House Llandriss and House Benryl. House Viziera, the Third House, enjoys its position of playing the first two houses against one another in the hopes of their mutual destruction.

The City of Morthindol is a grand sight of elegant spires carved from the very stone and minerals of the underworld. Archways and lofty bridges link many of the upper levels of the city some of which are lit by dim crystal lanterns or glowing mosses or fire beetles. Alien-looking crystal gardens decorate much of the city and the whole image strikes any visitor as something of a somber and gloomy faerieland. Shadow demons, giant bats and other creatures sacred to the dark elf goddess can be spotted throughout most of the city and the surrounding caverns.

Another area of note is a second side cavern known as the Labyrinth of Sheolba, a deadly network of twisting tunnels and chambers filled with many monsters of horrifying description. The area serves as a testing ground and prison for the Queen of Shadow to weed out the weaker of the dark elves. All dark elves, upon reaching a certain experience level, receive a calling and must enter the maze and work their way toward the exit in the center of the maze while fending off attacks from the monstrous and oft times deranged inhabitants. Those that survive take their rightful place in dark elf society. Those that fail either die or are forever trapped within the mazework.