Originally inhabited by Chultan dwarves, Hrakhamar was abandoned when nearby volcanic eruptions forced the dwarves to flee. With the dwarves absent, a group of firenewts moved in and put the forge to work crafting armor and weapons for themselves.

Hrakhamar was built around an underground volcanic rift, which the dwarves exploited to smelt iron and adamantine by lowering the ore into the magma in clay crucibles. The complex also contained an armory, extensive forge facilities, and an armory containing the stockpiled wealth of Hrakhamar, including the sacred dwarven artifact know as Moradin's Gauntlet.