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«Yggdrasil City» (イグドラシル・シティ,Igudorashiru Shiti?) is the new capital city of Alfheim that was established at the middle part of the World Tree after ALfheim Online was acquired by Ymir. After its establishment, half of Alne's population migrated to this city.
After the reunion at Dicey Cafe, the participants of the «Aincrad Capture Commemorative Party» agree to gather at Yggdrasil City at 23:00 for the afterparty. Kirito and Leafa do not manage to reach the city on time, so they stop midway to witness the Floating Castle Aincrad descending from the sky atop the world of Alfheim.
The name of the city, like most of the settings for the world and lore of ALfheim Online, came from Norse Mythology. Yggdrasil refers to the World Tree, which connected the nine worlds of Norse Cosmology.