According to the legend, this mighty artifact is the only hammer that can be used to properly forge a dragonlance. It was once given to the dwarven hero Kharas by the dwarves of Kayolin in recognition for his heroic deeds prior to the Cataclysm, and was lost after the Dwarfgate War. The Hammer of Kharas is twice the size of a normal warhammer. It is said that the dwarf who possesses the hammer will become the king of Thorbardin. Only those of inherent good can weild it and then the hammer still controls the person more than the person controls the hammer.

The hammer of Kharas functions as a +2 dwarven warhammer of disruption; any undead creature struck by the hammer must succeed as a Fortitude save (DC 14) or be destroyed. The Hammer of Kharas is an intelligent artifact, with Intelligence 11, Wisdom 20, and Charisma 19; it is neutral good in alignment. The Hammer of Kharas possesses the following special abilities, used at 20th level of ability unless note otherwise:

- Bull's Strength on wielder, 1/day
- Cure Serious Wounds 1/day
- Detect Evil at will
-Globe of Invulnerability on wielder
- Prayer 1/day
- Protection from Arrows on wielder
- Turn Undead as a 12th-level cleric
- Wielder is immune to normal and magical fear

The Hammer of Kharas pursues the special purpose of preserving the security of the dwarven race and furthering the cause of good. The Hammer of Kharas possesses Ego 30, and the special purpose power to use Enthrall on all dwarves within 300 ft. at will.