Stonehills is a small iron mining settlement directly east of Morthal. It is based outside of Rockwallow Mine, which is owned by Thane Bryling of Solitude.
The settlement is totally self-sufficient, with the people responsible for their own well-being. The settlement is protected by one Hjaalmarch guard, who stands outside the mine.
Stonehills is the encampment for the miners working in Rockwallow Mine, with Sorli's house right next to it. The camp consists of a group of five small tents arranged around a central campfire each with a bed roll inside. To the north of the campfire is a rack with nine salmon hanging from it, with a chicken coop containing two chicken's nests further to the north near a wood chopping block and smelter. Beside the smelter is a cart holding four iron ingots, with six more ingots stacked beside the smelter on the ground. Opposite the cart are a stack of crates with a pickaxe on top.
To the southwest of the campfire is a grindstone, while around the camp are a few patches of fly amanita, a snowberry bush, and several blue mountain flower patches. There is a waist-high stone wall which is in pretty poor condition separating the camp from the road, and also marking the path to the mine and encampment. The road links Dawnstar to Morthal. Sorli the Builder and her spouse, Pactur, are responsible for running the mine and have a house where they live with their son Sirgar.
- If the Stormcloaks take over Hjaalmarch, the residents of Sorli's House are all supposed to move to Highmoon Hall, including Pactur who is supposed to act as steward judging from his dialogue and faction. However, due to an oversight, Pactur stays in Stonehills.
- Stonehills previously appeared in Arena.