Ice Island is an area Gorion's Ward and party will be teleported to after accepting the quest, or being forced to accept the quest, to recover a cloak for the mage Shandalar. The location and exact nature of the island is unknown, although some theorize that it is a type of teleportation prison.

Here is the island. It has no other name than this and is too small to appear on any maps. By the stars I would place us deep in the Trackless Sea, perhaps even farther afield than far-southern Chult, though I cannot really say.

– Andris

It is an odd place to be sure, Teleportations are affected most drastically, in effect trapping the occasional passing mage.

– Shandalar

The island has two levels: the surface and an underground dungeon. The surface has a polar bear lurking about while the dungeon has ankhegs, another polar bear, and winter wolves. There are seven mages who are trapped in the dungeon, one of which is in possession of the cloak.

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