The Gremlin Cave is a Dungeon in the south-west corner of the Drakalor Chain. It has two unique honors: it is the only dungeon in the game that begins completely dark, and the only dungeon in the game that only ever spawns one type of monster.
There is one guaranteed item in the cave - the Phial of Caladriel, which is an Artifact that when used will drain the players' Power Points to zero and light up the surrounding area. The amount of lighted squares appears to be based on how many remaining PP the player has.
As the name suggests, the cave is full of Gremlins, which, strangely enough, are damaged by some forms of light. Torches and Amulets of Light wont hurt them, however zapping a Wand of Light or the Phial of Caladriel will damage them.
There are several advanced "scumming" tactics used in the Gremlin Cave to obtain large amounts of items and experience.