The Forgotten Realms is a fantasy setting created by author and game designer Ed Greenwood for the Dungeons and Dragons role-playing game. Most action in the Forgotten Realms takes place in Faerûn, which is part of the world of Abeir-Toril. It was originally created in 1967 as a setting for short stories by Greenwood, but it has since become the most enduring campaign setting for Dungeons & Dragons.

Neverwinter Nights 2, like its predecessor, takes place in this campaign setting, around the city of Neverwinter along the Sword Coast. The Mask of the Betrayer expansion however takes place in Rashemen. The upcoming Storm of Zehir expansion will return to Neverwinter as well as feature the Chultan Peninsula.

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