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This chamber served as the primary residence of the Council of Elders following the death of King Grayskull who's last act was empowering them with great magic. As a result, the Council of Elders ruled Eternia from the Hall of Wisdom where they helped direct the forces of good against the forces of evil. Many years ago, the Hall was attacked by the villainous Count Marzo who was defeated by Captain Miro. This led to the evil wizard being imprisoned in the form of an old man and later exiled to the Dark Hemisphere. In the years afterwards, a young ambitious ruler known as Keldor sought to storm the Hall of Wisdom with his Evil Warriors in order to claim the great power of the Elders themselves. To prevent this Captain Randor and the Masters of the Universe sought to warn the Council who were aware of this. A surprised Randor urged the Elders to move to safety but they informed him that Randor's forces would defeat Keldor and that the Captain himself would rule in their stead as King. Their declaration came to pass with Keldor and his forces being forced to retreat to the Dark Hemisphere. The Mystic Wall was later created by Man-At-Arms and the Sorceress of Castle Grayskull to contain Keldor's evil forces.
In the aftermath, the region of the Hall of Wisdom was abandoned and instead the sit of government for the Light Hemisphere was moved to the Royal Palace where King Randor ruled after the Council of Elders disappeared. The site of the chamber was later used as a market place where merchants and others traded. After the destruction of the Mystic Wall, Skeletor traveled to the site of the Hall of Wisdom and interrogated a merchant in order to learn what became of the Council of Elders. The terrified merchant revealed that the Hall was no more and that the Council had vanished ages ago. This sparked Skeletor's new quest in learning where the power of the Elders now resided in his campaign to become the undisputed ruler of Eternia. Afterwards, Tung Lashor and Sssqueeze secretly travelled to the ruins of the Hall of Wisdom in order to find the Tablet of the Elders for King Hiss.