Cragstone is the capital city of the Aluvian Realm. It is named after Thorsten Cragstone, a fallen hero of the Olthoi rebellion. Cragstone was the first above-ground settlement of the Isparians, which they settled after moving out of the nearby Underground City on the Isle of Tears on Lake Blessed. Besides the standard vendors, collectors, and quest NPCs, Cragstone is home to the Aluvian Library where the translator of Yalaini text lives. The Arcanum's Aluvian furniture shop is also just outside of town.
During the Shadow Wars, Cragstone was attacked by a Shadow Spire at the same time as Arwic and Tufa. Elysa Strathelar, Asheron, and the advocates were able to destroy the Shadow Spire and save Cragstone, but Arwic and Tufa were not so lucky.