It was the location of the Pact, where the First Men agreed to peace with the Children of the Forest. In celebration of the Pact, every weirwood tree on the island was given a carved face, which gave the island its name.
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Meera tells Bran a story, called Knight of the Laughing Tree in the Year of the False Spring, about a Crannogman, who travels to the Isle of Faces. He stays there before going to a tourney.