Misty Gorge is a swampy area in Phoenotopia found between Atai City and the central Castland region. Gale has to pass through this area in order to find Thomas and get his help. It is also the area where Gale can purchase the Floaty Donut, which is required to traverse the Gorge's river and other bodies of water.
Misty Gorge consists of a long river at the bottom of a gorge. Due to the Atai-Daea Bridge being destroyed by the Desert Bandits, many travelers have opted to cross the Gorge instead. Gale is told of this location by Lisa, who marks it on her map.
The south side of the Gorge contains a rest area with an inn and a shop. It is here that the Floaty Donut can be purchased, as well as a Lamp for lighting up dark caves. A Fisherwoman here can be asked about the Blue Wisps and the Quick Equip feature. Outside the shop is a man who will warn Gale about the Phantom Prawns, telling her to dive into the water if buzzing is heard.
The Misty Gorge's river is filled with several dangerous creatures, including Toads, Fish, and Phantom Prawns. The Gorge must be crossed by either swimming through the river or hopping across giant flower leaves and arch platforms found throughout the area.
Towards the end of the Gorge at the north side is a mountain area containing two caves, one with a Save Shrine and the other containing a Moonstone and one of the Space Rocks. The Rocket Boots are required to reach the latter cave. The cave with the Save Shrine also contains its own secret area; the ground to the right of the Shrine can be destroyed with a bomb or charged javelin to reveal an area underneath with a resting spot and a few chests of money.