According to legend, during one of the many expansionist phases of the Kingdom of Nimeiria around the mid-6th century, the Caliph and his viziers at the time sought to claim the Floating Kingdoms as their immediate prize. Their long range goal was to then use these enchanted islands as a base from which to launch numerous raids into the Aldari lands to the North.

Taxes where levied, tradesmen were conscripted into service and master shipbuilders from all over the Kingdom were enlisted to build the greatest naval force ever known. Lumber was brought in from as far away as Bengalia and it was even whispered that the Caliph may have sought outsider aid from a number of very dubious sources. The Royal Naval Yards of Bakarah were kept busy almost night and day and within a number of years, the harbor was filled with some 65 warships of the latest design. Mercenaries from Angharad as well as loyalist marines of Nimeiria were brought in to man the ships and prepare for launch in the Spring of 661.

The intelligence gathered from the Grand Vizier of the Caliph had indicated that the Floating Kingdoms would be ill-prepared to defend against such a superior force. Their resistance would quickly crumble and the islands would be soon overrun by Nimeirian soldiers. The Sorceress-Queens had other plans of course. At any other time, the Nimeirian plan might have worked had it not been for two factors. First, the artifacts contained within Lamprey City known as the "Swan Fleet" were a highly guarded secret and have never been utilitized en masse before that time. Although only little more than a dozen in number, the enchanted and highly manueverable artifact-vessels succeeded in keeping the Nimeirian Armada at bay until the second factor surfaced leading to the Armada's ultimate demise. Seemingly from out of nowhere, an incredible storm from of great and almost unnatural fury blew in from the Narrow Sea. Powerful winds and torrential downpours made quick work of the Nimeirian fleet and most of its ships were sunk having never reached the shores of their target. From the original number, only 6 warships survived and made it back to Bakarah.

The Caliph of Nimeiria was ooutraged by such a disasterous defeat. It was widely believed that this sudden storm was no work of nature and rather the result of sorcery from none other than the queens of the Floating Kingdoms. Nevertheless the Grand Vizier of Nimeiria was executed for this failure. It would be many centuries before the kingdom would be able to replenish the royal treasury and rebuild the once glorious navy. The Caliph and his descendents vowed never to attempt such a direct assault on the Floating Kingdoms again.

This is not the end of the story however. For it is believed that the Nimeirian forces were not completely defeated as was generally believed. On dark and cloudy nights when one of the two moons are full, a ghostly armada can be seen sailing across the horizon. This Phantom Armada is said to be the very same that struck out from the ports of Bakarah and is now manned by spirits of the drowned sailors.

Most sightings of these ghost ships have resulted in simple glimpses of the shadowy sails in the distance that vanish as quickly as they appear. Reports of such sightings have come from all across the central waters from the Narrow Sea throughout the Midland Ocean and as far north as the White Sea and the Border Isles. Most sightings have been concentrated in the area commonly known as the "Dark Triangle." However a few unlucky ships have had direct encounters with the Phantom Armada and few survive to even tell the tale. The ghostly crew are believed to have no earthly ties with their former hosts in Nimeiria and seem to appear and disappear with no rhyme or reason.

For what purpose does this haunted fleet serve and how can one defeat a foe already dead? The sightings are rare enough that most believe the Phantom Armada to be mere folk tales spun by half-drunken sailors with nothing better to do then spin wild stories of past glory.