Smiley's was an infamous tavern in the Docks Quarter of Malaz City formerly owned in partnership by Dancer and Kellanved. Surly used to work as a barmaid there. Banaschar described it as "where rats go to die", and the sailors of the Ragstopper agreed the food was awful.
Most citizens believed that Smiley's was merely a haunting - people hearing voices in the air, tankards clunking, laughing and sad music.
Sergeant Hellian forced Banaschar, under arrest, into the inn for a round of drinks before she took him with her back to the ships.