Plot
The game begins in the town of Easthaven, where the player's party of adventurers is resting at a tavern. The town's leader, Hrothgar (voiced by Jim Cummings), invites the player's party to take part in an expedition to the town of Kuldahar, which has recently sent word of strange happenings. On the road to Kuldahar, the group is ambushed by frost giants, who cause an avalanche. Save for the player's party, the entire expedition force is crushed, and the way back to Easthaven is blocked.
The party continues on to Kuldahar, where they meet Arundel (Jim Cummings), the village's Archdruid. The druid explains that a mysterious evil force has been causing abnormal weather patterns and monster behavior, and kidnapping villagers. As a result of these disturbances, the magical warmth surrounding the giant tree, under which the town is built, has begun to recede. Arundel sends the party to discover the source of the evil before the tree dies, and Kuldahar is destroyed. Following Arundel's advice, the party first goes to the "Vale of Shadows", an area containing Kuldahar's crypts, due to rumors of undead creatures being seen there. However, Kresselack (Tony Jay), a cursed barbarian spirit residing in the Vale of Shadows, informs the player that the threat to Kuldahar is not present in the area. The party returns to Arundel, who asks them to retrieve an ancient scrying item called the Heartstone Gem, so that he may discover the source of the evil more quickly.
The player's party travels to a temple that Arundel believes houses the gem, but finds that it had been attacked recently, and the gem stolen. Arundel discovers that the attackers' lair lies within the caverns of Dragon's Eye, and the party travels there to retrieve the gem. After making their way through a network of tunnels, the party finds a powerful demonic creature named Yxunomei (Tara Strong). Yxunomei claims to be using the Heartstone Gem for personal reasons, and mentions a vendetta and age-old war with someone she sarcastically referred to as an "old friend." After slaying Yxunomei and retrieving the Heartstone Gem, the player returns to Kuldahar, and finds it under attack. The player converses with a shapeshifter disguised as Arundel, who reveals that he was the one Yxunomei had mentioned, and that the real Arundel is dying in another section of the hut. After the shapeshifter vanishes, the player locates the real Arundel, who tells the party to take the Heartstone Gem to Larrel (Michael Bell) at the fortress of the Severed Hand, as he is now the only one capable of using it.
The party arrives at the fortress, discovering that Larrel had gone insane. Larrel brokenly mentions something about freeing his cursed people, along with a hint on how to go about it. After completing his task, Larrel regains his sanity and uses the Heartstone Gem to discover the source of the evil, which apparently resides in the dwarven city of Dorn's Deep.
After carving their way through Upper Dorn's Deep, Wyrm's Tooth, and Lower Dorn's Deep, the party at last reaches Brother Poquelin (John Kassir) – the villain of the game. Poquelin explains that he arrived in the material plane due to his superiors exiling him from his home plane – according to Poquelin, calling his vendetta with Yxunomei "out of control." Poquelin had predicted that Yxunomei would follow him to the material plane, so he had sought a base of operations in order to begin a military force capable of crushing her. While he was doing so, he stumbled upon the ancient artifact Crenshinibon, which he claims had been "calling" to him. Using its power of attracting evil-intentioned creatures, Poquelin began amassing an immense army with which to conquer the lands of Icewind Dale. He claims that everything was going as planned until Hrothgar's expedition had set out to investigate Yxunomei's activities in the area around Kuldahar. He used his frost giant minions to cause the avalanche to crush the expedition. Apparently, he did not see the player's party as a threat until they stole the Heartstone Gem from Yxunomei, to which he responded by killing Arundel – the only person he thought would be capable of using it. Although the party discovered his location by taking it to Larrel, Poquelin wasn't bothered, as all the while he was amassing his forces outside of Easthaven. After combating Poquelin, he teleports the party back to Easthaven, which is now in ruins. After freeing the surviving villagers and speaking with a local cleric of Tempus, the party makes its way to Poquelin's lair – Easthaven's temple, which has been enveloped by a Cryshal-Tirith (Elvish, meaning "crystal tower"), courtesy of Crenshinibon.
In the end, it is revealed that Poquelin's true intention was to re-open Jerrod's Stone (a portal to the Nine Hells of Baator created long ago), so that he could conquer the North with an army of devils at his command. Although after opening the portal, the local cleric of Tempus, Everard, hurls himself into it just as its namesake did – sealing it off at the cost of his own life. This buys the party enough time to fight Poquelin, who has reverted to his true form – the devil Belhifet. After defeating Belhifet and banishing him back to the Nine Hells, the Cryshal-Tirith collapses, and the party barely escapes in time. Easthaven begins to be rebuilt, and the game ends with the party victorious.
In a twist ending, the game's Narrator (David Ogden Stiers) and Belhifet are revealed to be one and the same; the demon implies that his mandatory century of imprisonment (after his defeat at the hands of the Player's party) is close to an end and that he will soon walk the Prime Material Plane once more....
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