Gröndal (formerly Krage) is an island northeast of Estard Island. Most of the island's residents speak in a pronounced Swedish accent.
Gröndal is the place where the Great Tree Roots of Ygg grows. It is guarded by an elf. To protect the tree, the elf spread a rumor that whomever cuts down the tree will suffer divine punishment. Due to the influence of Ygg, the water from this tree is said to be the best tasting water in the world. It is drawn from the singular well in the center of the town.
The party enter Gröndal through the fane. They come across a nearby inn that tells them not to enter Gröndal as there is something strange going on there.
The party enters Gröndal and notices that everyone claims to be the Demon Lord. A cloud of purple smoke rises from the singular well in the town. The people bicker over who is the real Demon Lord. The Stranger gets some of the townspeople to cut down Ygg, the same tree that is said to carry divine punishment to those who would try and cut it down. Whomever was brave enough to cut down the tree had to be the true Demon Lord. Three of the villagers agree and head to Ygg.
The party visits the mayor of the town, who tells them about the state of affairs that has overcome Gröndal. He mentions to the party that they should check up on the girl who lives near the tree and tell her not to come to Gröndal. The party goes to visit the girl but she is sound asleep. They return to Gröndal and talk to the mayor who feels as he is losing his grip on his sanity. The party, realizing that talking to him will do no good, return to Ygg.
There they see three of the villagers being used to cut down Ygg. The elven girl tries to stop them but is hit by one of the townspeople, knocking her unconscious. The party stands up to that person. The villager, believing himself to be the Demon Lord, tries to cast a spell on the party. However, as he doesn't actually know the spell, it fails. Another villager tries another spell, but it has the same result. The same happens to a third villager. They wonder why it is that their "Demon Lord" powers aren't working. The Stranger, frustrated by the competence of the villagers, tells the villagers to continue cutting down the tree while he takes care of the party. However, he is defeated. The Stranger leaves Ygg with the villagers right behind him.
The party tend to the elven girl who gives them a jar to catch the dew from Ygg. They do so and feed it to her, restoring her strength. The elf realizes that this might be the cure to help the villagers in their delusions. She tells the party to take the Dew of Life and put it in the well.
The party heads to Gröndal and enters the mayor's house. They feed him the Dew of Life and he recovers. He realizes that this is the cure for the well's poisoning. He tells the party to put the Dew of Life in the well. Unfortunately, as they are about to do so, the Stranger realizes what they are trying to do. He tells the villagers to surround the well and protect it from the party.
The party return to Ygg to talk with the elven girl. She is distraught over how the villagers would refuse the Holy Dew in their water. She then remembers that Ygg's roots are connected to the Gröndal well. She digs up a passage so that the party can pour the Dew of Life from inside the well. She warns them that the Roots of Ygg has been infested with monsters and asks them to be careful.
The party traverse the roots of the tree until they are directly under Gröndal. There they see the source of the water poisoning. A Well Wisher has taken root in the well. Before the party can pour the Dew of Life into the well, they must first contend with the Well Wisher. The party defeats the monster and are able to pour in the Dew of Life without interruption. As they pour the water in the well, the villagers are immediately cured of their poison. It also has a painful effect on the Stranger.
The party climb the well back into Gröndal to find that they have cured the villagers of their delusions. But the Stranger challenges the party. He tells them that they will pay for messing up his plan and reveals himself to be a Fighting batboon. The party defeats him.
After the party's victory, they head to the mayor's house. He thanks them for saving Gröndal and gives them beds to sleep in for the night to show his thanks. In the morning, the mayor asks them to visit the girl near Ygg as she has something to say to them.
When they do, the elven girl reveals her origins and her task. She is tasked with making Ygg into the World Tree. This task will take hundreds of years, but thanks to the party, she will be able to do it. She hands them a staff of salvation with her thanks. With that, the party heads back to the present.
The Great Tree Ygg has become the World Tree. It is able to produce Yggdrasil Leaves. The town of Gröndal has dug out many more wells in the interim due to the fear that their well might be poisoned again. In one of the stores, the town sells Yggdrasil Dew, which is able to cure the entire party completely. However, they will only sell it to one person in the party and the party must not have one in their possession already. Brugeo owns a house in Gröndal as well.
Gröndal is Swedish, meaning "green dale". Gröndal is also the name of a municipality in Sweden itself.