Greycloaks are members of Neverwinter's standing army. The recent plague and war with Luskan have drained Neverwinter of wealth, leaving the Greycloaks poorly funded and equipped. The name "Greycloaks" comes from their lack of uniforms - there simply isn't enough money to put all of them in armor or even dyed cloth, so they wear simple cloaks for their unofficial uniforms.
Most Greycloaks are citizen-soldiers with little professional experience, though several veterans of the recent war with Luskan fill the ranks with much-needed expertise.
On patrol at Crossroad Keep