The Friendly Arm Inn is a stone keep which houses the titular inn and is surrounded by an outer wall, which also protects the Temple of Wisdom (a shrine dedicated to Garl Glittergold), a handful of houses, and stables. With its location on the trade way between Baldur's Gate and the town of Beregost, the Friendly Arm is a safe haven for travellers.

The keep was once the stronghold to worshippers of Bhaal, the Lord of Murder, but the gnome Bentley Mirrorshade, his gnome wife Gellena and their adventuring party cleaned out the keep and Bentley is now the current proprietor of the inn, while Gellena is the head priestess in the temple of Garl Glittergold. At the Friendly Arm peace is secured by both the guards as well as the barmaids of the inn who are said to be iron golems camouflaged as women by illusionary means.

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