Lands of Elves is a name of a broad territory in the south of Midgard. That is where New Alfheim is located - a city of elves who decided to leave their home world after the fall of Valhalla and move closer to people hoping for the immortals' help.

You can reach the lands of elves through the Elven Gates - to do so, you'll need a guide from New Heim (your district's level has to be 80 or higher).

In the lands of elves, you'll face new difficult enemies, but you'll be able to obtain rare resources to develop your characters, make new equipment, and build new crafting benches.

Note that the scout by the Elven Gates gives out tasks for exploring new territories. Remember to return to the scout and claim your reward after you complete the task.