The Supreme Leader of the Hobgoblins is a rank in Hobgoblin society denoting absolute command over all eighty eight legions of hobgoblin forces in the Southern Mountains. The Supreme Leader is traditionally identified by the Sceptre of Supreme Leadership, the Headdress of Supreme Leadership and the Shiny Gold Amulet of Supreme Leadership.
After Redcloak, Xykon and the Monster In The Darkness fled the Dungeon of Dorukan, they took control of the hobgoblins to use as an army. Despite Redcloak's protests, he begins the initiation rite to become an honorary hobgoblin so he can advance to the rank of Supreme Leader, before discovering that he can rise through the ranks far easier if he kills the current Supreme Leader. In actuality, the hobgoblin Redcloak kills was not the Supreme Leader, but the genuine leader, seeing what would happen if he spoke up, told Redcloak otherwise.
Under Redcloak, the hobgoblins are used to clear traps and distract deadly monsters while Xykon searches for Serini's diary in his old fort. Later, they are marshalled and marched to Azure City, where Xykon hopes to capture the Rift there and crush the human city. The conflict climaxes at the Battle of Azure City with the defeat of the Azurites and the occupation of the city by the hobgoblins. Eventually, the ruins of Azure City come to be known as Gobbotopia, a city for all races of Goblin to live side-by-side in peace. While Redcloak remained Supreme Leader, the hobgoblin cleric Jirix was made Prime Minister of Gobbotopia.