In Peter S. Beagle's "The Last Unicorn," the setting outside the town is defined by the ominous presence of King Haggard's castle, which stands precariously and unnaturally, resembling a crazed figure balanced on long stilts. This vivid imagery evokes a sense of foreboding and highlights the precariousness of the kingdom ruled by Haggard, suggesting that all is not well in this enchanted world.

The castle's dark and unstable nature serves as a metaphor for the themes explored in the story, including the isolation and despair that accompany power and the search for beauty amid darkness. The characterization of Haggard and his fortress reflects the struggles faced by the characters, as they navigate a land steeped in both magic and melancholy.