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Knothole Glade is a town situated on an island off the Albion mainland, near the Witchwood Arena and the Temple of Avo. It is protected from the various dangerous creatures that occupy the island by a large wooden gate which is constantly guarded. It is led by a chieftan who also runs the local Fist fighters gang. In the middle of the town stands a statue of Scarlet Robe, a heroine popular for her balverine slaying exploits. Despite being one of the larger towns in Albion, Knothole glade is perhaps the least safe, commonly suffering attacks from balverines and bandits, as well as allowing anyone tobrandish a weapon at their own will. However, for the most part, the town runs smoothly. There is a tavern, a weapons shop, and a tattoo shop as well as a general store. A unique element of the town is the shooting range.

In Fable II, 500 years after the first game took place, Knothole Glade seems to have ceased to exist, though a land mass just off the mainland, Knothole Island, is likely related in some way.

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