The Elfhold is the secluded homeland of the secretive High Elves. Located on an island surrounded by the Elven Forest, no human has ever set foot on the island. The Elves are peaceful, but their magic could cause terrible losses to any army that opposes them, and so Dennholm struck a durable peace with the elves in BK200. The elves keep up a robust trade with Dennholm through The Perch, the trading post/watchtower that nominally protects Dennholm from an Elven assault, though no such attack has ever occurred. As a term of the peace agreement, humans are not permitted within Elven lands except with an elven accompaniment, but elves may travel freely across Dennholm.