Liar's Retreat is a cave located in the northeastern part of The Reach, southwest of Cliffside Retreat and east of Karthwasten. An alternate route is to travel northwest from Broken Tower Redoubt. It is also just east of the Reach Stormcloak Camp.
It is a bandit hideout that, upon arrival, is found to be in the process of being overrun by Falmer. Exploration will reveal the gaping hole used by the Falmer to invade, leading to Falmer lairs further in.
This location is a little different to most caves in the sense that there is no shortcut looping back to the start of the cave.
Upon entering the cave, which appears similar in appearance to fort ruins, there has been bandits and Falmer fighting to the death, with the Falmer out numbering the bandits.
A single hostile Orsimer bandit is hiding from the Falmer, barricaded in a sleeping area behind a locked door.
Once the fort section is cleared and explored, it is clear to see the Falmer have busted into the ruin from the inside. This part of the cave is more typical of Falmer habitats and has alchemy ingredients scattered through out the cave until the end chamber.
There are also frostbite spiders (one of which drops from a hole in the ceiling) and chaurus (including a chaurus reaper) deeper inside the cave system. With Dawnguard, the chaurus reaper may be replaced by a chaurus hunter.
When exploring the tunnels the Dragonborn may come across two enclosures. One enclosure contains a dead bandit and the other contains two live bandits who are being taunted by a Falmer on the other side of a gate. The bandits may manage to open the gate and kill the Falmer. If they live, they are hostile to the Dragonborn, even if they assist them.
Rahd's body lies on an altar with a Falmer sword stuck in his chest in the middle of the final chamber with the unique Orcish warhammer, The Longhammer, next to him. It can often be underneath the tablet Rahd's body is lying on, making it easy to miss.
When finished exploring, backtrack to the fort section. Upon returning, three bandits arrive and the chief begins calling for service from the deceased barkeep, only to spot the carnage and exclaim, "What in Oblivion happened in here?" If they spot the Dragonborn, they will assume that they are the responsible party and become hostile.
- Speech skill book Biography of the Wolf Queen in the third room to the left, on the stone shelf between the iron helmet and the potions.
- The Longhammer, next to Rahd's corpse in the final chamber. This will respawn as long as the dungeon is not cleared.
- Tavern Clothes, on a dead woman behind the bar in the first room. They respawn on the dead female, as long as the dungeon is not cleared.
- Blisterwort – 2 can be found in the Falmer section
- Bleeding Crown – 6 clusters and 2 single mushrooms can be found in the Falmer section
- Fly Amanita – 3 can be found in the Falmer section
- Glowing Mushroom – 26 clusters and 4 single mushrooms can be found in the Falmer section
- Imp Stool – 6 can be found in the Falmer section
- Namira's Rot – 12 can be found in the Falmer section
- White Cap – 4 can be found in the Falmer section
- Chaurus Eggs – 86 egg sacks and 5 single eggs can be found in the Falmer section
- Almost all of the blood types for "Discerning the Transmundane" can be found here, including Falmer, Orc, and all Elven blood types, with the exception of Altmer.
- This is one of the few places where tavern clothes can be found.
- Despite not having a typical cave entrance, followers will comment on it as though it were a cave.
- There are three corundum ore veins between the spider's nest and the pens holding the bandits. Another is outside.
- The dwemer ruins that the Falmer emerged from are inaccessible.
- If the Dragonborn refuses to take the Longhammer, or does not have enough carry weight, the hammer will be gone the next time they enter.
- werewolf, the game may freeze. If the Dragonborn enters as a
- If Serana is your companion (or anyone that conjures dead bodies to fight for them) and she revives a dead body, that body may not be able to be used for harvesting blood any longer.
- If the Dragonborn enters with beast blood and is attacked by the Falmer, they might receive a message saying “Your vampiric powers recede as you feed” and the Dragonborn may be given vampiric powers, resulting in both Vampiric and Lycanthrope powers.