Náli was one of the Dwarves who set out with Balin to reclaim Moria for Durin's folk in the late Third Age. Their mission at first seemed successful, and Balin went so far as to claim the title Lord of Moria. Over a period of a few years, though, it became clear that the Dwarves were not as secure as they had hoped in their ancient citadel, and at last the Orcs came in force to reclaim it. The Bridge of Khazad-dûm was captured, leaving the Dwarves trapped in the Second Hall (where the Company of the Ring would encounter the Balrog, just twenty-five years later). There was a mighty battle in the Hall, and many Dwarves fell, including Náli and his companions Frár and Lóni.