The Crown of Phlehorn was forged for the first king of Phlehorn. In the Year 94, the first king was slain on a hunting expedition. Both he and the crown were entirely lost when they disappeared into acidic breath of a black dragon. Two years later, another crown was made for the King of Phlehorn. This was magicked to afford more protection to its wearer and to give some leadership qualities, which the current king seemed to lack. Over the next thousand years, this crown was enhanced, and because of Phlehorn success as a nation, it was secretly blessed by Danzar-Khâl. This blessing hardened the item such that it became an artifact.
During the period 1499 to 1502, the Black Tide leader Katrana waged war against the dwarves of Maharâg. In 1502, after subduing the dwarves, Katrana changed them into duergar . She did this by using the Elder Orb of Embers to corrupt the Crown of Phlehorn. This now cursed crown was placed on every dwarf, transforming them from dwarves into duergar. These duergar pledged allegiance to Katrana. The corrupted crown is still in possession of Katrana.