The small cave is a dungeon found to the north-west of Terinyo.
The small cave's most important feature is its unique monster generation system, although how it works exactly is yet unknown. The initial monsters are generated with experience levels up to 5, but the longer you spend, the more dangerous it becomes, since monsters are suspected to scale with player's level (2x is rumored). Due to this, a player intending to cross the Small Cave early into the Unremarkable Dungeon is advised to enter the Small Cave while still at level 1, so the cave is initially filled up with low level monsters. DL which affects items dropped and monster types generated is equal to character's level.
Note, however, that due to the high experience available, a player is likely to level up rapidly, with increasingly lethal results. Also worth noting that all monsters generated recheck the player's level as they are generated, rather than a static value.
This also leads to some rather interesting tactics: a player can avoid killing monsters to slow their generation, and it is one location where both stealth and charisma/appearance can have a huge effect on a character's survival. Likewise, for a high level character, danger can be reduced with invisibility.
It is also plausible for those using music to recruit allies or those with summoning spells to abuse the rapidly increasing danger level to their advantage and collect high danger level equipment, though it is a high-risk strategy; considering the growing difference between the player's level and those of the hostile enemies, and the need to constantly replace their own allies and avoid all damage.
As well as its monster generation system, the cave also has three guaranteed items, and the only way to gain access to the Unremarkable Dungeon.
The items are a waterproof blanket, a scroll of warning and a scroll of information. The scrolls are generated on entering location (upstairs), while a blanket typically is in the farthest corner room from the upstairs.
It is also believed that some basic equipment is also guaranteed, including a shield, a cloak, and some weaponry, though there has been some debate about exactly what weaponry is guaranteed: some believe it is one one-handed weapon and one two-handed weapon, while others say a staff class weapon is guaranteed. Ridiculously out of depth weapons, such as eternium two-handed swords are occasionally seen in the small cave as well, typically generated on floor. Further on, monsters in SMC have special penalty with half of item drops being cancelled.
There are no guaranteed inhabitants of the small cave, merely many many increasingly strong hostile monsters.
There are no quests started in the Small Cave, and no quests require you to visit the Small Cave; however, it is necessary to pass thorough the Small Cave to reach the starting point of several quests required for ultra or ordinary chaos god endings.