After the Darkening of Valinor, Morgoth escaped into Middle-earth bearing the great prize of the three Silmarils. He took for himself the title King of the World, and in the depths of Angband he forged himself an Iron Crown to mark the status he claimed. Within that Iron Crown he set the Silmarils, held by iron claws. The hallowed Silmarils burned Morgoth's hands through this work, but when it was complete he placed the Iron Crown upon his head, blazing with the light of the Three Jewels. There it remained through the long centuries of his time in Middle-earth, while the Elves made war against him for the recovery of the Jewels.

In the year I 466, the Iron Crown lost one of its three brilliant Jewels. Through the concealing magic of Lúthien, she and Beren were able to make their way into the throne chamber of Morgoth, and Lúthien placed the Dark Lord into a deep sleep. Beren cut one of the Silmarils from the Iron Crown, but his knife Angrist snapped before he could recover the other two. Beren and Lúthien made their escape with the single Silmaril, and from that time the crown of Morgoth shone with the light of just two of the three Great Jewels.

Morgoth bore the Iron Crown with its two remaining Jewels until the closing years of the First Age, when the forces of the Valar came against him in the War of Wrath that brought that Age to its end. At the close of that War Angband was opened and Morgoth was taken prisoner. His Iron Crown was taken from him and the two Silmarils it still held were removed, and then it was beaten into a iron collar. Once again Morgoth wore his Iron Crown, now around his neck and bound to his knees with the unbreakable chain Angainor. Thus he was taken to the judgement of the Valar in the West, before being expelled into exile beyond the Walls of the World.