The Village of the Lost is a border realm of Coldharbour, created and ruled over by Molag Bal, the Daedric Prince of Domination. It formed during the Planemeld when Molag Bal attempted to fuse Coldharbour and Mundus. Although not part of Coldharbour proper, three villages were pulled from Tamriel and landed in the realm after being fooled by deals with Dremora. These included a small township in Vvardenfell named Silver Run, along with the Khajiiti village of Khaj'yahai and the Orcish village of Dushnikh's Shadow. These villages were then scattered among islands of floating rock, and the villagers' souls were stolen. As it materialized, the realm was entirely covered in Azure Plasma, unformed chaotic creatia common in Coldharbour, from which all Oblivion matter is formed.
The leaders of the three villages— Suronii, Zirani and Ugorz— had survived the initial merging and remained as Soul Shriven. Daedra and undead also flocked to the new realm in great number to protect it. In 2E 582, a Tamrielic force invaded Coldharbour in an attempt to halt the Planemeld. Adventurers poured through a portal into the Village of the Lost, slaying many of its Daedric guardians, including the Daedric Titan Zatalguch. The souls of the village leaders were also freed by the adventurers. A servant of Meridia named Mezha-dro came to the realm to seal tears in Oblivion and prevent any more parts of Tamriel from slipping into the realm.
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