The third largest known city is New Caerul. Its population includes nearly all races, with half-orc being among the rarely seen. The city is connected to Hatul by an underground dwarf road designed to bring supplies and people into the city. The subterranean road is now a very long marketplace itself, even converting former garrisons into inns and apartments. This road has become an extension of the two cities, and is jointly called Marns District.

The nobles of New Caerul are descendants of the knights serving at the end of the Orc Wars of San. Unlike most of the kingdoms of Tarnti, the lords and nobles here are often studious of the magical arts, and some houses even have magick artifacts found in the Ancient Woodlands, granted to them by the elves. There is no official wizard college or sect here, as most who produce a talent for magic at a young age are granted admission into the Ancient Woodlands by the elves who train them.