The town of Granite Hill is located on the border in between the Falkreath Hold and the Whiterun Hold. Granite Hill is a town that thrives on agriculture, from the Falkreathian forest to the south. The town has roads that lead to the townships of Karthwasten Hall in the west and another one that leads to the town of North Hall. Near the township is a Dragon Mound dedicated to the Dragon named Vuljotnaak, who was slain in the First Era during the Dragon War.
The town of Granite Hill was under the occupation of the city of Whiterun, which was under the rule of Jarl Gjalund, whose territory expands beyond the Whiterun Hold borders in the modern age. Granite Hill served as a trading town in between two trading cities. Roughly around the same time, the Dragon War had ravaged the province and had ended atop of the Throat of the World when Felldir the Old banished Alduin with the Elder Scrolls. The Dragon known as Vuljotnaak was defeated near the town of Granite Hill and was buried in a mound not far from the village.
During the Imperial Simulacrum from 3E 389 to 3E 399, Emperor Uriel Septim VII was imprisoned along with Talin Warhaft in the Deadlands by Jagar Tharn. Tharn planned for months to capture the throne, and he was able to achieve so in the span of ten years. Tharn had a powerful weapon called the Staff of Chaos, and he split it into nine pieces and scattered them across Tamriel, the staff was the only thing keeping Uriel Septim and Warhaft in Oblivion. A warrior escaped his clutches and traveled all corners of Tamriel to retrieve the missing pieces. The hero was known as the Eternal Champion, and he assembled the staff and defeated Jagar Tharn at the Imperial Palace. The Eternal Champion had at one point visited the town of Granitehall in their quest to recover the pieces.
During the Skyrim Civil War, the township of Granite Hill was under the occupation of the city of Falkreath, which was under the control of Jarl Siddgeir. The town influenced the Court of Falkreath, by having an emissary partake in the Court. The war had affected the trade routes throughout the Hold, causing taxes from somewhere such as Granite Hill to come later than expected. Since Falkreath was under the control of the Third Empire, Granite Hill was likely on the side of the Empire and the Imperial Legion.
- Granite Hill was originally intended to be in The Elder Scrolls V: Skyrim, but for some reason was excluded, similar to the town of Heljarchen. In the Creation Kit, it is possible to find "GraniteHillLocation," which is now simply a blank space on the southern shore of Lake Ilinalta.
- Granite Hill's Dragon name, like Whiterun, Rorikstead, Old Hroldan and Ivarstead's, is written without the combined letter for "AH" (), instead using "A" () and "H" () separately.