The Silmarillion

When twenty years of the Sun had passed, Fingolfin King of the Noldor made a great feast; and it was held in the spring near to the pools of Ivrin, whence the swift river Narog rose, for there the lands were green and fair at the feet of the Mountains of Shadow that shielded them from the north. The joy of that feast was long remembered in later days of sorrow; and it was called Mereth Aderthad, the Feast of Reuniting. Thither came many of the chieftains and people of Fingolfin and Finrod; and of the sons of Fëanor Maedhros and Maglor, with warriors of the eastern March; and there came also great numbers of the Grey-elves, wanderers of the woods of Beleriand and folk of the Havens, with Círdan their lord. There came even Green-elves from Ossiriand, the Land of Seven Rivers, far off under the walls of the Blue Mountains; but out of Doriath there came but two messengers, Mablung and Daeron, bearing greetings from the King.

At Mereth Aderthad many counsels were taken in good will, and oaths were sworn of league and friendship; and it is told that at this feast the tongue of the Grey-elves was most spoken even by the Noldor, for they learned swiftly the speech of Beleriand, whereas the Sindar were slow to master the tongue of Valinor. The hearts of the Noldor were high and full of hope, and to many among them it seemed that the words of Fëanor had been justified, bidding them seek freedom and fair kingdoms in Middle-earth; and indeed there followed after long years of peace, while their swords fenced Beleriand from the ruin of Morgoth, and his power was shut behind his gates. In those days there was joy beneath the new Sun and Moon, and all the land was glad; but still the Shadow brooded in the north.

And when again thirty years had passed, Turgon son of Fingolfin left Nevrast where he dwelt and sought out Finrod his friend upon the island of Tol Sirion, and they journeyed southward along the river, being weary for a while of the northern mountains; and as they journeyed night came upon them beyond the Meres of Twilight beside the waters of Sirion, and they slept upon his banks beneath the summer stars. But Ulmo coming up the river laid a deep sleep upon them and heavy dreams; and the trouble of the dreams remained after they awoke, but neither said aught to the other, for their memory was not clear, and each believed that Ulmo had sent a message to him alone. But unquiet was upon them ever after, and doubt of what should befall, and they wandered often alone in untrodden lands, seeking far and wide for places of hidden strength; for it seemed to each that he was bidden to prepare for a day of evil, and to establish a retreat, lest Morgoth should burst from Angband and overthrow the armies of the North.

Now on a time Finrod and Galadriel his sister were the guests of Thingol their kinsman in Doriath. Then Finrod was filled with wonder at the strength and majesty of Menegroth, its treasuries and armouries and its many-pillared halls of stone; and it came into his heart that he would build wide halls behind ever-guarded gates in some deep and secret place beneath the hills. Therefore he opened his heart to Thingol, telling him of his dreams; and Thingol spoke to him of the deep gorge of the River Narog, and the caves under the High Faroth in its steep western shore, and when he departed he gave him guides to lead him to that place of which few yet knew. Thus Finrod came to the Caverns of Narog, and began to establish there deep halls and armouries after the fashion of the mansions of Menegroth; and that stronghold was called Nargothrond. In that labour Finrod was aided by the Dwarves of the Blue Mountains; and they were rewarded well, for Finrod had brought more treasures out of Tirion than any other of the princes of the Noldor. And in that time was made for him the Nauglamír, the Necklace of the Dwarves, most renowned of their works in the Elder Days. It was a carcanet of gold, and set therein were gems uncounted from Valinor; but it had a power within it so that it rested lightly on its wearer as a strand of flax, and whatsoever neck it clasped it sat always with grace and loveliness.

There in Nargothrond Finrod made his home with many of his people, and he was named in the tongue of the Dwarves Felagund, Hewer of Caves; and that name he bore thereafter until his end. But Finrod Felagund was not the first to dwell in the caves beside the River Narog.

Galadriel his sister went not with him to Nargothrond, for in Doriath dwelt Celeborn, kinsman of Thingol, and there was great love between them. Therefore she remained in the Hidden Kingdom, and abode with Melian, and of her learned great lore and wisdom concerning Middle-earth.