Castle Graceskull is a castle in VI. The real Castle Graceskull is in ruins, but the party can use a magic well on the property to transport to the Dream World version.
Not much is known about the past of Castle Graceskull, except that the people there were well aware of the Archfiend Mortamor's existence (while most of the rest of the world was preoccupied with the Dread Fiend Murdaw), and that it was the resting place of the Armour of Orgo, one of the legendary pieces of equipment
Throughout the storyline, the party learns that the Armour of Orgo was located at Castle Graceskull, thought they needed the magic carpet to access it, and thus could not do it for quite some time. They arrive to find the castle in ruins from an unknown assault. Examining a well on the property, the party find themselves in the Dream World's Castle Graceskull, where a guard references a ceremony and escorts the party inside, saying they should stay inside the castle. After talking with people inside the castle, the party learns that the King of Graceskull intends to summon an incredibly powerful demon to fight against Mortamor. The plan, as they find out soon enough, went awry, as the demon, Nokturnus, became enraged and began attacking the castle, killing most of the people inside, and forever cursing all of their souls to relive that day over and over again, as the party finds out if they try to return to the Dream World Castle Graceskull. However, the events do show the party the path to the Armour of Orgo, which was safely hidden beneath the ruins of Graceskull, untouched all this time, allowing them to obtain another piece of legendary equipment.
- The name "Graceskull" is a possible homage to and pun on the Castle Grayskull of the He-Man universe. This is somewhat supported by the fact that both castles have something to do with death: one is destroyed by Nokturnus, and the other is a frequent target of conquest for Skeletor, a tyrant with a skull for a head.