In the south-west corner of the Ancient Cavern lies a set of steps. This leads to a closed off section of the upper level leading to the dragon forge, which was used by dragonkin to forge dragon equipment out of Orikalkum. The forge contains a large basin, 3 dragon heads made out of metal, and many anvils. There are channels in the side of the basin and marks in the floor where lava would flow from the mouths of the dragons and into the basin, then flows out again and runs along the floor, out of the room.
During Dragon Slayer II, players reignite the forge by unlocking the mithril door on the upper level using an ancient key found in a dragonkin laboratory underneath Ungael. Inside the mithril door are three hanging dragon heads and a giant orb in the centre. The player must click on each head to light it using Fire Wave or Surge, which will cause them to have fire appear in their mouths.