Lost Valhalla was discovered when, during the Crystal Wars, a powerful mage blasted apart a cliff face with fire. When the cliff melted, although the Alsirian defenders were forced back, several soldiers of Alsius found refuge in Lost Valhalla. It was believed to be a myth by the Crystal Guards who maintain their long vigil over Crystal Island.
Lost Valhalla is connected to the Alsirian afterlife. When an Alsirian dies, their souls temporarily rest in Lost Valhalla before they join their ancestors in the hereafter. It is the souls of the departed that keep Lost Valhalla and its waters warm and flourishing with life.
Several beasts also make their homes in Lost Valhalla.