Gnarlwood is a darkwood tree located in the heart of the Narlmarches. The party removed a unicorn horn that had been stuck in Gnarlwood's wood. The horn had been left there by a unicorn that charged him. The unicorn, Charlie, had gone mad. The party later found Charlie's dead body and the trunk of the horn, which they destroyed. Around Charlie's body were the hoofmarks of two other equine creatures.

As a reward, Gnarlwood provided the party with darkwood.

Gnarlwood also let the party know a little about the current politics at the fey court, but he would not speak at length about the Fey Queen. He mentioned that an ironwood tree to the south-west had been turned to stone because of opposition to the Queen and that he had no desire to meet a similar fate.

Later, Morgan saved the tree from being chopped down by Coran.