The kingdom of Daedala occupies the forests north of the Zarackis Mountains and east of Sunder's Vein. The oldest kingdom of the Realm, it is inhabited by the Elves and their allies. The kingdom, though it lost territory in the last war (over 10,000 years ago), has endured through countless invasions due to the well-trained rangers and superb guerilla tactics implemented. The forests here are thick and the scent of pine is ever-present. Forestry and the mining of iron support the kingdom and its elaborate citadels. The tundra of the Isle of Valencia, the only island occupied by the kingdom and named for the first Elven Regent, is well suited to seal hunting and fishing.

While the kingdom maintains an air of peace, the Elves fear a new invasion is coming from the Galvan Republic in the north or the Pelijian goblins to the northwest. The goblins of Pelijia have long been jealous of the expansive territories the others hold and the Elves fear they may act on their ambitions. The Galvan Republic, while inhabited by Gnomes and Dwarves (both of whom have allied with the Elves during the last several wars), is another possible danger. The Elves do their best to aid the kingdom, but expansionist plans seem to be prevailing in lieu of the current economic situation of the Republic. This worries the Elves, even though they would have kingdoms believe otherwise.

The forests of Daedala are inhabited almost solely by Elves. Only scattered villages of humans and rarely encountered magical woodland creatures dwell in the region alongside the Elves. Along Sunder's Vein lie two massive Elven citadels and the ruins of a number of ancient cities belonging to a race believed to be extinct.