This place was first shown during The Fall of the Eastern Champion, with history going all the way back to about 2000 years ago. And it all started with Yang and his battle with the Emperor that would lead to his unintentionally discovery the place and SlugTerra.
Behind a waterfall, here lies the Grotto and beyond that, is Peach Blossom Spring. That was where Yang built a new home for him and his people, but after the Emperor caught word of SlugTerra's existence, the Emperor would stop at nothing to find and control it. Eventually when he does find it, it was here at this Grotto where Yang would make his final stand and manage to defeat the Emperor by forming a chasm, which the Emperor would fall through.
- Unlike The Drop, this place is a walkable journey.
- The Grotto is based on the Chinese fable The Peach Blossom Spring. In the story, when the fisherman reached the end of the river, the source turned out to be a grotto, in which he squeezed through it and found a village separated from the outside world.