After the liberation of Arabel from Cormyr, the Purple Dragon army fought with the Phoenix Legion until the latter's leader and founder, King Gondegal, was murdered in secret by forces within the Free State. With Cormyr recovering from this war, in addition to the many struggles that preceded it, the nation does not have the strength or inclination to retake the city by force.
With the return of Myrmeen Lhal, a truce was established, allowing the Purple Dragons to establish a base near the city of Arabel. The Cormyrean Embassy is made up of nobles and trusted officials of Cormyr, tasked to build her strength as an ally, keep trade flowing freely, and ensure the rights of Cormyrean subjects in Free Arabel. Its Purple Dragons are tasked to aid with the defense of Arabel, along with the Embassy itself.
In the summer for 1380, during the Second Goblin War, the Cormyrian outpost at Castle Crag was assaulted by the Devil Dragon's forces and a strange cult that worshipped slimes. The entirity of their forces there were destroyed along with Constal Chalvier and War Wizard McIntyre, two very high ranking Cormyrian heroes.