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The Kingdom of Alalee, commonly just Alalee, is a sovereign island kingdom located a distance off the coast of the Black Marsh. Alalee has established sea borders with the Cyrodillic Empire, and the two recognize each other as sovereign nations.

Alalee is an absolute hereditary monarchy, in which the monarch, known as the Manabelle, has supreme power throughout the kingdom through direct rule. For administrative purposes Alalee is divided into seven subdivisions called Calhounds, each ruled by an appointed family loyal to the Manabelle that has power insured by their specific right as assigned by the Manabelle. Every spring, the families meet in the capital city, Pasacagoula, for a declaration of the country by the Manabelle and joint council on the ruling of the nation in an event known as the Feast of the Thousand Blossom. The Kingdom of Alalee was founded around the 2E 940 after several hundred bands of natives of Yokuda had traveled across Tamriel to find a new homeland that suited them better than Hammerfell. Using Argonian legend, the bands eventually arrived in what is now Pasacagoula and established the Kingdom of Neyokuda. The modern Kingdom of Alalee was established in 3E 122, when Breton migrants arrived on the northern part of the island and established what is now known as the Kingdom of Alalee. For three hundred years, the Bretons and the Yokudans remained in a constant state of war until their unification under Jousilee the Peacemaker in 3E 434. She renamed the whole kingdom as Alalee, and declared the capital to be in the city of Pasacagoula. By 4E 105, the population had become a single national body, after nearly a thousand years of integration efforts.

Alalee has an ancient economy based on agriculture that has existed since it was settled by the Yokudans. It exports many fruits, vegetables, and grains that are endemic to the island, and also has a large livestock presence that is known for its quality in beef and in wool. Agriculture is the country's primary economic activity, in which most food is exported and traded with mainland Tamriel for goods and raw materials not found on the island. While agricultural exports dominate the economy, mining, logging, fishing, and other primary activities are still vital in areas where they may exist. The northern portion of the island is known to be home to large amounts of iron and coal, and the most southern end is known for its large, ancient trees which are assisted with magic to become very large and strong as lumber. Craft and artisan activities are found in both villages and in cities, with Alalee being a major exporter of steel, lumber, and cotton goods. Most citizens enjoy moderate personal wealth, and the current government has made it a goal to end rural and urban poverty throughout the island. By Imperial standards, most citizens live in developed areas and enjoy a large amount of economic freedom. Feudalism is generally discouraged by the government, though it remains in practice in more conservative areas of the country.

The Kingdom of Alalee enjoys officially established relations with the Aldmeri Dominion and the Medic Empire. The nation's government did not take a side during the Great War, and ultimately refrains from using military force in their diplomatic policies.

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