Phalorm
Duchy of Hunnabar
Dominated by the Dragonsteel and Arlspar clans, the dwarven duchy of Hunnabar was formally created with the establishment of Phalorm, the Realm of Three Crowns (more popularly known today as the Fallen Kingdom, although many other lost realms through the ages have had this moniker attached to them also) in 523 DR and encompassed the south-western section of the High Moor near present-day Dragonspear Castle. Dwarves first settled the underground cavern networks of the southern High Moor region around two thousand years after the establishment of the dwarven realm of Ammarindar, to the east and north. Prior to that many wandering dwarves, most of them clanless, had prospected and mined the region since the time of the Shanataran diaspora, moving northwards to found such realms as Delzoun, Gharraghaur, Besilmer and others lost in legend.
What drew the Ammarindan dwarves to settle the area for the first time were the rare but rich seams of mithral ore that lay deep beneath the High Moor, metal that had been coveted by the Fair Folk of Miyeritar millenia before. Fighting the drow of Eryndlyn, the dwarves of Hunnabar (named for the axe of Hunn "Smokebraids" Dragonsteel, a long-dead champion of that clan is literally translated as Hunn's keen cutter) took advantage of the chaos caused by a derro "Uniting War", to build the underground fortress of Kanaglym, thereby cementing their presence in the area and giving them a defensible base against attacks from other Underdark races and predators. The dwarves of Hunnabar did not have any surface settlements of note until the time of Phalorm, building the sea tower of Ilynth and another fortified tower known as Borgan's Hold a day's ride north of present-day Dragonspear Castle. Both were completed by 540 DR. Both are now ruined, the duergar totally obliterating the latter after it had been abandoned - although loremasters say that a forgotten armory of the dwarves survived the onslaught, accessed as it was only by means of a keyed portal. Tomes of lore to be found in the ruins of Ammarindar may hold the secrets to this armory, believed to contain, amongst other things, the hammershield of Dorn "Blackcloak", Faerin's forgegauntlet and a construct known as the stone kuldjhargh. The Sea Tower of Ilynth was destroyed by "fell sorcery" (rumored to be a cabal of Shoonite wizards known as the Mask of Darkness who had fled the fall of that realm in the previous century and established a stronghold somewhere in the lands north of Amn), but its deeper levels remain, many of them accessing the sea of the Sword Coast and believed to be inhabited by kuo-toa, aboleth and worse.
The dwarves of Hunnabar fared badly against aboveground concerted humanoid and troll attacks in the century of Phalorm's existence coupled with increasing underground assaults from duergar. Kanaglym was sacked by duergar in 557 DR whilst much of Hunnabar's battle-strength was fighting alongside other armies of Phalorm against a hobgoblin horde. Weakened, Hunnabar continued as a separate entity of the Fallen Kingdom until 592 DR when troll attacks made their holdings and position in the area untenable. The surviving dwarves travelled north to their kin in Dardath over the next decade, the other dwarven duchy of Phalorm, and lived there until the fall of the realm in 615 DR. Many dwarves of Hunnabar settled in Ammarindar following the fall of the Realm of Three Crowns, but the once-proud Dragonsteel and Arlspar clans were but pale shadows of their former strength and glory. With the eventual fall of Ammarindar in the Year of the Curse 882 DR, it is thought that these clans are both now extinct.