The origin and creation of the Hobgoblins trace back to the Seven Kingdoms of Utsukkuen. Though goblins did not originate Utsukkuen, a large band of orcs aboard a ship brought them to Utsukkuen when they had planned to lay siege to Heiwakun. The nations of Utsukkuen banded together and set aside their own warring differences to fight off the Orcs. The battle had lasted for nearly a year, and though the Orcs had been defeated, they had already settled on several of the islands, as did the goblins who had been servants. Many of the goblins managed to reproduce quickly, doubling their numbers exponentially.

The orcs tried to maintain their control over the goblins, but the goblins revolted against the orcs and soon created powerful tribes. Maglubier, their god was proud of their freedom against the orcs and encouraged them to assault the humans of Utsukkuen. However, the goblins were not ready to face off against the honorable likes of the Samurai that they encountered and were driven back, their numbers decimated, which allowed the orcs to once again convince the goblins to serve the orcs. Maglubier was furious that his creation had once again fallen under the heel of the orcs. Maglubier then took the greatest goblin in Utsukkuen and changed his flesh – shaping him after the Samurai warriors that had broken the goblin assault – and the first Hobgoblin was born. The Hobgoblin named Grath Honorbound led the goblins against the orcs, decimating them – and in the blood of the orcs, more hobgoblins were born. The Hobgoblins were mimics of the Samurais in their skill and became feared.

The Hobgoblins led attacks against the humans in Utsukkuen and became the second most dominate humanoid in Utsukkuen. In 774, the Hobgoblins began setting sail to find and attempt to conquer other lands.

Some Hobgoblins have broke free of their need for war, but they are so far and few between. And those who still serve the warbands will actively hunt down any who have left, as they are seen as dishonorable and apostates, which has lowered the number of Hobgoblins even further who have broke free of their war like mentality.