Xot's Badlands is a geographical area in Utrae's northeastern coast, south of Xot's Pass and north of the cliff city Xulphae's Cove. The Badlands consist of a deep, arid gully whose water channels support harsh vegetation.

The Droc had warcamps in Xot's Badlands and were the main obstacle to the passage of the Hero of Arhok through the region. A Great Krakbone, a massive, one-eyed water monster, also lurked in a flood zone along the path. Searching among the caves set in the Badlands' west canyon wall, the hero wrestled supplies away from the Droc. In a final cave, past the Great Krakbone, the hero cast down the Droc leadership and rescued a Utraean pilgrim and family man named Umberteen. He presented the Hero with an heirloom Spellbook.


In the center of the Badlands, along the bending waterway, there is an Ornate Chest containing Demlock's Amulet. In Elite multiplayer mode this chest can be well-worth a visit, as it is replaced with a randomized container allowing the highest possible treasure grades in the game, bar none. This chest, and a similar one in the Fury's den under Fortress Emarard, attempt to award one each of a Magic, Rare, and Unique item, resp. blue, purple, and yellow— although high content rolls will frequently fail.