Jehanna Hall was the home of the Jehanna royal family, mainly Queen Ismaire and Joshua (before he left on his own). During the events of The Sacred Stones, Jehanna Hall is captured by the Grado Empire. The castle is captured when one of the Queen's closest knights, Carlyle, betrays Jehanna when Caellach promises him that he can have the Queen (whom he has fallen in love with) if he helps them hold Jehanna Hall.
Carlyle is killed trying to defend Jehanna Hall for Grado, while Caellach takes the Queen to a back room. There, he demands the Queen hand over the Sacred Stone of Jehanna. When she refuses, he kills her and takes the stone, destroying it.
After this, the retreating Grado forces set Jehanna Hall ablaze to force the Princess Eirika and her forces out, depriving them of a fortified position from which to engage the combined armies of Caellach and Valter. Forced into the desert and surrounded by two large enemy armies, Eirika and her companions faced almost certain doom, but are unexpectedly reinforced by Ephraim and his forces, who had just arrived after conquering Grado Keep.