Phandalin was originally a farming community. The orcs of the realm of Uruth Ukrypt (“Home of Uruth”) had destroyed all game in their realm, and, in search of food, they turned on the human settlements in the area, raiding them. Phandalin was one of these settlements, and in 951 DR, it was overrun and then abandoned.
In the last three or four years, hardy settlers from the cities of Neverwinter and Waterdeep have begun the hard work of reclaiming the ruins of Phandalin. A bustling frontier settlement has grown up on the site of the old town, and is home now to farmers, woodcutters, fur traders, and prospectors drawn by stories of gold and platinum in the foothills of the Sword Mountains.